California Code of Regulations
Title 12 - Military and Veterans Affairs
Division 2 - Department of Veterans Affairs
Chapter 2 - Veterans' Farm and Home Purchases
Subchapter 1 - Eligibility and Qualifications
Section 302.2 - Property Appraisal

(a) Before the purchase of any property by the Department, there shall be filed with the Department an appraisal of the market value of the property according to established appraisal principles and pursuant to Department procedures as stated in the Farm and Home Purchases Division Operations Manual, Chapter 4, dated February, 2001, which are incorporated by reference.

(b) The appraisal will be performed by an employee or authorized agent of the Department on a panel of fee appraisers who have been interviewed by Department staff and trained through the Department in Cal-Vet appraisal procedures. All appraisers other than Department employees must be licensed to perform residential appraisals by the California Office of Real Estate Appraisers (OREA). However, appraisals by authorized appraisers of a banking corporation formed under the laws of this state or of a national banking association having a place of business in this state may be accepted and USDVA and FHA appraisals may also be accepted if:

(c) On those applications that will not be receiving a USDVA guaranty, the Department shall select the method of appraisal (Department agent, fee panel, or other form of appraisal). The applicant may elect to have the appraisal ordered prior to a credit and/or eligibility review with the understanding that they are still responsible for the appraisal fee even if their application is declined.

(d) On existing homes, appraisals shall be ordered upon initial eligibility and credit approval unless the purchaser elects to have an appraisal performed earlier. On new construction, appraisals shall be ordered no more than 45 days prior to the estimated completion date.

(e) The Department shall assure that there are sufficient state-licensed real estate appraisers on its fee panels to process application volume in a timely fashion. The Department shall recruit panel members through its application process and by providing notice of its recruitment efforts to professional appraisal associations.

(f) In the case of loans receiving guarantees through the USDVA, appraisals shall be assigned by the USDVA in accordance with USDVA requirements.

(g) All appraisals are for the benefit of the Department only, to determine the adequacy of the subject real property as sufficient security for the loan. Such appraisals are not intended to warrant the condition or value of the property to any other purchaser or prospective Cal-Vet contract holder. Such appraisals are not a representation to the veteran as to the desirability, suitability, condition or actual value of the subject real property, such determinations being entirely the responsibility of the veteran purchaser.