What Happens If the VA Appraiser Finds Mold?

The Report You Didn't Want to Read

Your VA appraisal comes back. The appraiser found visible mold. The document uses words like "MPR deficiency" and "required remediation." Your closing date, which felt solid last week, now feels theoretical.

First: take a breath. This isn't necessarily a deal-killer. I've seen dozens of VA purchases navigate mold findings and close successfully. But it does add steps to your process, and understanding the sequence in advance — rather than scrambling to figure it out in real time — makes a significant difference in outcome.

In the Army, we had a phrase: "No plan survives first contact." Your home purchase plan just made contact with reality. The question isn't whether the plan changes — it's how well you adapt. Adaptation starts with information.

Why Mold Fails MPRs

VA Minimum Property Requirements require properties to be safe, sanitary, and structurally sound. Significant mold can violate all three:

• Safety: Mold exposure causes respiratory problems, allergic reactions, and worse — particularly in children, elderly individuals, and anyone with immune compromise
• Sanitation: Visible mold growth violates the "clean and free of contamination" standard
• Structural soundness: If moisture has been present long enough to produce visible mold, it may have caused wood decay, material deterioration, or structural weakening

The VA isn't being difficult. They're protecting you from buying a property with serious problems that could cost you more than the remediation. That's the protective function of the appraisal process working as designed.

The frustrating part is when you find this out through the appraisal rather than through your own testing — because at that point, the power dynamic has shifted.

The Sequence: What Happens Next

Step 1: The Issue Is Documented

The appraiser notes the mold in their report as an MPR deficiency. This report goes to your lender, who cannot proceed with the loan until the issue is resolved. There's no discretion here — it's documented, it's official, and it's not going away without action.

Step 2: Remediation Is Required

"Professionally" is the key word. This isn't a situation where the seller can spray some bleach, wipe down the surface, and call it resolved. Professional remediation involves:

• Identifying and fixing the moisture source — because mold without moisture doesn't happen
• Containing the affected area — preventing cross-contamination during removal
• Removing contaminated materials — drywall, insulation, other porous materials
• Cleaning and treating remaining surfaces — structural members, framing, concrete
• Verifying success — post-remediation testing confirms the work was effective

In nursing, we never just treated the symptom without addressing the underlying condition. Mold is a symptom. Moisture is the disease. Any remediation that removes mold without fixing the water source is like giving a patient pain medication without treating the fracture — it looks better temporarily, but the problem isn't solved.

Step 3: Verification

After remediation, independent verification is required. This might be:

• The original appraiser returning to re-inspect
• Another VA-approved appraiser
• An independent environmental inspector conducting clearance testing — which is where I come in

I strongly advocate for clearance testing by someone independent of the remediation company. The entity confirming the work was done correctly should not be the entity that did the work. That's a conflict of interest I've seen produce unreliable results more times than I'd like to count.

Step 4: Loan Proceeds

Once verification is complete and documented, the loan processing continues toward closing. The MPR deficiency is cleared. Your lender has the documentation. The deal moves forward.

Who Pays

This is negotiable, and your negotiating position depends on your situation:

• Seller pays: Most common for VA transactions. The property is their responsibility until closing, and the mold is their property's condition.
• Price reduction: Seller reduces price so buyer can handle remediation. Risky for VA loans since remediation must happen before loan approval.
• Buyer pays: Rare, but sometimes the only way to save a deal in a competitive market.
• Escrow holdback: Funds held at closing to cover remediation costs. Requires lender approval and isn't available from all lenders.

Your negotiating position also depends on market conditions. In a competitive seller's market, you have less leverage. In a balanced or buyer's market, the seller has more motivation to work with you. Your real estate agent is the right person to strategize here — they know the local dynamics.

When Walking Away Makes Sense

Sometimes the mold problem is severe enough that remediation costs are prohibitive — especially if there's structural damage from long-term moisture intrusion. Wood rot in load-bearing walls, foundation damage from chronic water intrusion, mold throughout the HVAC system — these are expensive problems that can eclipse the property's value adjustment.

In these cases, walking away isn't failure. It's the system working exactly as intended. The VA process prevented you from buying a property with major problems that would have cost you more than the purchase price to fix. Your earnest money should be protected if you're still within your contingency period.

You'll find another home. And the next one, you'll test before the appraisal.

"Every veteran who's been through VA appraisal mold issues tells me the same thing afterward: 'I should have tested first.' It's the same lesson the Army taught us — reconnaissance before commitment. The inspectors who find problems are cheaper than the problems you discover after signing."

How to Avoid This Situation Entirely

The best way to handle mold discovered by the VA appraiser is to discover it yourself, before the appraisal happens:

1. Get environmental testing early — During your inspection period, before the appraisal is scheduled
2. Negotiate from strength — If you find mold, you control the conversation and the timeline
3. Address issues proactively — Remediate while you still have leverage to negotiate terms
4. Document everything — Clearance testing after remediation proves the work was done right

When you find the mold yourself, you negotiate on your timeline with full leverage. When the appraiser finds it, you're reactive — scrambling to remediate before your contract expires. Same issue. Dramatically different outcomes. The difference is timing and who holds the initiative.

My Role — Whether It's Before or After

If the VA appraiser has already found mold, I can help with scope assessment (how significant is the problem), remediation oversight (ensuring the work is done properly), and clearance testing (verifying successful remediation with independent confirmation).

If you haven't gotten to the appraisal yet, I can help with pre-purchase testing so you find issues before they become appraisal problems. Prevention is always less expensive than reaction — in healthcare, in military planning, and in home buying.