will a VA loan pass a house with screw-in style fusebox???

[Ryan Rhodes]

Hey guys, currently trying to work my VA loan to get into a duplex and start my first house hack. Everything seems well however it has screw in style fuse boxes. I've looked all over but cant get a definite answer if these boxes will still pass for VA inspection. Has any one ran into this situation or have any knowledge??

[Andrew Postell]

@Ryan Rhodes thanks for posting this.  Bigger Pockets does have a Veteran forum too if you ever want to ask questions there.  

The answer to your question is going to be complicated but you're going to be protected with your "Third Party Financing Addendum" in your contract at a minimum.  The technical answer here is that there is no VA inspection....there is an APPRAISAL though.  They sound similar but they are not the same.  Your inspection, that you do BEFORE the appraisal, is designed to find every single thing wrong with the property.  You normally get a 50 page (or so) report on all the things wrong with a property.  If you have never done this before it can be very daunting at first glance.  We all go through it and this will fall inline with your "Option Period".  If you aren't familiar with these terms please consult your real estate agent on what these are.  Your inspection is for you.  Under NO CIRCUMSTANCES are you to show this to your LENDER.  They should not see this - ever.  It can cause a lot of problems.

Now, let's say the inspection is good and now it's time for your appraisal. The appraiser visits the house to put a value on the property by measuring the square footage, counting beds/baths, etc. For most loans (Fannie/Freddie/FHA/VA) the appraiser is tasked with doing a "visual" inspection. Meaning, they aren't testing the electrical grounds, they aren't turning on the water...but they are checking to see if the condition of the home is safe and that the "structural integrity" is sound. Things like wood-rot, or if the bathroom is being renovated, etc. will be flagged for most loan types as things that need to be fixed before closing. HOWEVER, a VA appraiser is tasked with something else as well....they have to make sure that certain "codes" are adhered to.  So if the county code is that stairs with more than 3 steps need to have a railing...then the property would need to adhere to that code.  Same with FUSE BOXES.  So if the county code states that fuse boxes have to adhere to X" then that's what we need to be done.

Now, combing through county codes or even calling the county to find out if there is some code for this might be next to impossible.  And that's why your "Third Party Financing Addendum" is in place.  This is SEPARATE from your option period. But you do have a time frame (usually 21 days from the execution date) to receive a "yes" or "no" from your lender.  If they can't lend, then you get to back out and receive your earnest money back.  Now you might have "lost" the money that you paid the appraiser, but you can still back out within that 21 days.  Just get that appraisal ordered and back within that period of time.  And that's if you can't negotiate with the seller on it.  Sometimes these are things that have to be addressed no matter who buys the property.  So if they don't fix it for you, then next person might need it to be fixed too for their loan.  And that's if it's even a county code that the appraiser notices.  

*WHEW*  I know that's a lot of information but I hope this helps in some way.  Feel free to tag me with any additional questions.  Good luck!