VA Appraisals on Rural Foothill Homes: Wells, Septic, Wood Stoves and Pest Reports

By Mike Faulkenberry, REALTOR® · U.S. Air Force veteran · Nevada County native · Updated September 16, 2026

A VA appraisal checks that a home is safe, sound and sanitary, which on foothill property usually means proving the well water is safe, the sewage system works, there is a conventional heat source besides a wood stove, and the roof keeps water out. In California, VA also requires a wood-destroying pest inspection report. Knowing these ahead of time prevents surprise repairs in escrow.

What VA’s Minimum Property Requirements are for

VA appraisals do two jobs: estimate market value and confirm the home meets VA’s Minimum Property Requirements (MPRs). MPRs are not a full home inspection. They focus on safety, structural soundness and sanitation. Rural homes in Grass Valley, Penn Valley and Alta Sierra tend to raise the same handful of items.

The items that come up most on foothill homes

Item	What VA looks for	How to prepare
Private well	Water that is safe and potable, judged by local health standards first, then state, then federal	Order a lab test early. VA has required samples to be taken by a disinterested third party, not the buyer, and results have been valid for 90 days. Confirm current requirements with the lender.
Septic system	A safe method of sewage disposal	Pull the county septic file and get an inspection and pumping report.
Wood stove heat	Acceptable only if the home also has a permanently installed conventional heating system that can keep it at 50°F or warmer	If a stove is the only heat, plan for a conventional system before closing.
Roof	Keeps moisture out and has reasonable remaining life	Get a roof inspection if the roof is older or shows wear.
Wood-destroying pests	A wood-destroying insect report is required for properties in California	Schedule the pest inspection early; Section 1 items may need repair.
Access	Safe, legal access to the property	On private roads, find any recorded easement or road maintenance agreement.

If the value comes in low: Tidewater and reconsideration of value

Tidewater: if the appraiser expects the value to come in below the contract price, they notify the lender before finishing the report, and the agents get two business days to send comparable sales and other information that supports the price.

Reconsideration of value (ROV): after the report is done, the buyer can ask the lender to submit a reconsideration with valid sales data the appraiser may not have used.

Both work best when your agent already has solid nearby comparables. In the foothills, that means sales with similar acreage, water source and condition, not county-wide averages.

A simple escrow checklist for VA buyers of rural homes

Ask the seller up front for well records, septic records, the roof’s age and what heats the house.
Order the well water test and septic inspection in the first days of escrow.
Schedule the pest inspection right away.
Talk with your lender about any repairs the appraisal might call for, and who will pay for them.

VA updates its Lenders Handbook periodically. Your lender and appraiser apply the version in effect for your loan, so confirm specific requirements with them.

Frequently asked questions

Does a VA loan require a well water test?

VA requires well water to be safe and potable. Lenders typically require a test, and VA has required samples to be collected by a disinterested third party. Confirm current requirements with your lender.

Can a home with a wood stove qualify for a VA loan?

Yes, if the home also has a permanently installed conventional heating system that can maintain at least 50 degrees Fahrenheit.

Is a termite inspection required for a VA loan in California?

Yes. VA requires a wood-destroying insect report for properties in California.

What happens if a VA appraisal comes in low?

The appraiser may use VA’s Tidewater process to request supporting sales before finishing, and afterward the buyer can request a reconsideration of value through the lender.

Sources

Information current as of September 16, 2026. General information only, not legal, tax or lending advice.