VA, FHA, and Conventional appraisals all impact your homebuying journey differently. VA loans offer the strongest buyer protections, including built-in safeguards like the Tidewater Initiative, which gives buyers a chance to contest low appraisals. FHA appraisals are strict on property condition but lack Tidewater protections, while Conventional appraisals are quicker but offer less recourse if values fall short. Understanding these differences helps buyers navigate appraisals confidently and avoid costly surprises.lk.
What’s an Appraisal, and Why Should You Care?
You’re not just buying a home—you’re making the biggest financial decision of your life (so far). So the lender wants to make sure the home is actually worth what you’re paying. That’s where appraisals come in. They’re not for you, really. They’re for the lender. But here’s the thing—you need to understand them, especially if you’re using a VA loan, FHA loan, or a Conventional loan. And they all come with different rules, protections, and hidden potholes.
VA Appraisals: Built-in Protections + The Tidewater Initiative
If you’re doing a VA loan, listen up—there is honestly no better setup when it comes to buyer protection. Why? Because of two words no one tells you about: Tidewater Initiative. The VA appraisal process not only ensures the house is worth what you’re offering—it gives you a built-in second chance if the value comes in low.
- The Tidewater Rule kicks in BEFORE the appraiser submits a lower value.
- You (or your agent) get notified, and the lender has 48 hours to bring in more comps to support the value.
- This process can help boost the value before it’s made official.
It’s massive. If you’re even close to military service or qualify for a VA loan—this is the gold standard of appraisal protections. Also, VA appraisers are looking at Minimum Property Requirements (MPRs), so structural stuff matters too. They won’t approve a place that’s falling apart or missing a handrail. But listen—VA deals protect the buyer more than any other loan type. Period.
Real Example:
One of my clients in San Diego was using a VA loan. The appraisal came in $15K low. We got the Tidewater notice. We hustled to pull 3 comps from the same zip, sent them in within 36 hours, and bam—value matched our offer. No money out of pocket. If this had been a Conventional loan? They would’ve had to eat the difference or walk.
FHA Appraisals: Buyer Safety First, but Less Wiggle Room
FHA appraisals are strict when it comes to property condition. Like with VA, safety is king. But you don’t get that glorious Tidewater protection built in. So what makes FHA appraisal different?
- They use a checklist style—for heating, roofing, wiring, water systems
- Peeling paint on a pre-1978 home? You’re re-painting before close
- Cracked steps or no handrail? Fix it or no deal
- FHA will NOT insure the loan until the appraised value is met and the house passes all condition criteria
If you’re a buyer using FHA, just be ready: the home must be “move-in ready.” No fixing stuff later. And no Tidewater. So if the appraisal is low, you negotiate—or bring cash to close the gap.
Use FHA when:
- You’re putting down 3.5%
- You’ve got lower credit
- You’re buying a starter home in an older area
Just know—those condition red flags can absolutely kill a deal.
Conventional Appraisals: Cleaner Process, Less Protection
Conventional loans are backed by private lenders, not the government. And they play by a looser rulebook.
Here’s what makes Conventional appraisals different:
- They focus mostly on market value—property condition only matters if it affects value
- No MPR checklist
- No Tidewater. No second chance. What the appraiser puts is final unless you want to pay for a reappraisal
- If value comes in low, the buyer can renegotiate—or pay the difference.
It’s simpler. Faster. But there’s no safety net. If you plan on buying with 20% down and have strong credit, Conventional might make sense. Just keep in mind, fewer hoops doesn’t mean no risk.
Side-by-Side Comparison Table
| Feature | VA Appraisal | FHA Appraisal | Conventional Appraisal |
|---|---|---|---|
| Buyer Protection | High (Tidewater + MPR) | Moderate (MPR only) | Low (no protections) |
| Can renegotiate before final value? | Yes (Tidewater Initiative) | No | No |
| Property Condition Strictness | Strict | Very Strict | Loose |
| Owner-occupancy required? | Yes | Yes | No |
| Low Appraisal Response | Submit comps during Tidewater Notice | Negotiate or bring cash | Same – renegotiate or walk |
Where Most Buyers Get Tripped Up
Here’s where buyers screw up—
- They assume all appraisals work the same.
- They don’t understand what protections they do (or don’t) have.
- They go in blind and then panic when the appraisal is low.
If you’re armed with the knowledge going in, you know what to ask, when to push, what comps to gather, and how fast to move. You don’t have to be the expert—you just need to get the rules of the game.
Key Takeaways for Buyers
- If you’re VA eligible, use it. Period. That Tidewater Initiative is a game-changer.
- FHA can be solid but comes with condition hurdles. Prep your seller early.
- Conventional is cool—less red tape—but no fallback plan if the price doesn’t appraise.
Start talking to your real estate agent early about comps. Be proactive, not reactive. And if you’re still figuring out which loan type fits you? Hop over to the FHA vs VA vs Conventional comparison guide.
FAQs
What happens if the VA appraisal comes in low?
You’ll get a heads-up through the Tidewater Initiative before the value is finalized. Your lender and agent can submit new comps to try to boost the value. If it still comes in low, you can renegotiate the price—or walk away with your earnest money intact.
How fast do appraisals get done?
Usually within 5–10 business days after the appraisal is ordered. VA and FHA appraisals sometimes take a little longer because of extra inspection points.
Can I challenge a low appraisal?
Yes, but it depends on the loan type.
VA loans: You get the Tidewater Initiative and then a Reconsideration of Value (ROV) option.
FHA and Conventional: You can request a reconsideration, but it’s harder. You’ll need rock-solid comps to have a shot.
What’s the Tidewater Initiative again?
It’s a VA-specific rule that alerts you before a low appraisal becomes official, giving you 48 hours to submit better comps. It’s a buyer’s secret weapon.
Is an appraisal the same as a home inspection?
Nope. An appraisal checks if the house is worth what you’re paying. A home inspection checks if the house is safe and sound to live in. You 100% still need a separate inspection.
Which appraisal is stricter on home condition—VA, FHA, or Conventional?
FHA is the strictest (hello, peeling paint and handrails).
VA is close behind (safety and livability matter big time).
Conventional is more chill—unless condition affects value, it’s usually a non-issue.
If my appraisal comes in low, can I still buy the house?
Yes—but you might have to bring extra cash to cover the difference, renegotiate the price, or walk away, depending on your loan type and deal terms.
Conclusion:
In short, understanding VA, FHA, and Conventional appraisals can make or break your homebuying experience. VA loans stand out with powerful built-in protections like the Tidewater Initiative, giving buyers a vital opportunity to address low valuations. FHA loans focus heavily on property condition but offer less flexibility, while Conventional loans are faster yet riskier. Knowing these key differences ensures you’re better prepared, protected, and positioned to close successfully.
