What the VA Notice of Value Means for Your Loan

• A VA Notice of Value (NOV) is the official document that states a home’s value for VA loan purposes.
• The NOV is issued after a Staff Appraisal Reviewer (SAR) reviews the VA appraisal report.
• If the NOV comes in lower than your purchase price, it does not automatically mean the deal is over.

If you’re using a VA loan to buy or refinance a home, you may hear your lender mention something called a Notice of Value, or NOV.

The NOV is the document that officially states the home’s value for the loan and can also list any property-related conditions that need to be addressed. For buyers, that matters because the home’s value and condition can both affect whether the loan proceeds as expected.

The NOV is one piece of a larger process, and understanding how VA loans work from the start makes each step easier to navigate. In this guide, we’ll walk through what a VA Notice of Value is, who issues it, what information it includes, and what it can mean if the value comes in lower than expected.

A VA Notice of Value is the official document that establishes a property’s estimated reasonable value for VA loan purposes.

In simpler terms, it tells everyone involved what value is being used for the VA loan after the appraisal has been reviewed.

The NOV is tied to the VA appraisal, but it is not the appraisal report itself. The appraiser completes the appraisal first. Then that appraisal is reviewed, and the NOV is issued based on that review.

The NOV also does more than state a value. It can include a list of conditions and requirements that must be satisfied for the property to be eligible for a VA loan guaranty.

The Staff Appraisal Reviewer (SAR) is the person who issues the Notice of Value. The SAR is essentially the quality control reviewer who sits between the appraiser and your lender.

A SAR will review the appraiser’s report, confirm that the analysis supports the value, and make sure the property meets VA standards before issuing the NOV.

The Notice of Value usually includes the home’s estimated reasonable value for VA loan purposes, along with any conditions that still need to be met.

Depending on the property and the appraisal review, the NOV may include:

• The borrower name
• The property address
• The appraised value or estimated reasonable value
• Conditions or VA Minimum Property Requirements
• Notes about items that must be addressed before the property is eligible for VA loan guaranty

Those conditions can vary. In some cases, they may involve repairs or other property issues that need to be resolved. Your lender can walk you through the document, but having a working understanding of each section helps you follow along and know exactly how the NOV impacts your loan.

After the appraisal report is received, a Staff Appraisal Reviewer (SAR) reviews it and issues the Notice of Value. The standard turnaround time for an NOV is 3 days from receipt of the appraisal report.

That said, timing can vary if the reviewer needs more information or if the file is delayed by missing documentation or value-related questions.

The NOV matters because it establishes the value being used for the VA loan. If the appraised value supports the purchase price and there are no unresolved property conditions, the loan can continue moving through the closing process.

If the value comes in below the contract price, that can create a gap between what the buyer agreed to pay and the value established for the loan.

For example, let’s say you agree to buy a home for $400,000, but the property appraises at $380,000.

In this scenario, the VA will only guarantee a loan up to $380,000 for that property. Your lender has to structure the loan around the $380,000 value, even though your contract price is $400,000. That $20,000 gap is where decisions need to be made, but a low NOV is not the automatic deal-breaker it might seem.

If the appraised value is lower than the purchase price, the file cannot just move forward unchanged.

In that situation, the borrower will generally need to:

• provide a signed acknowledgment stating they understand the sales price is higher than the appraised value, and
• bring a down payment to cover the difference between the value and the sales price.

Using the example above, that would mean covering the $20,000 gap between the contract price and the appraised value.

A low value can put pressure on the transaction, but there are still a few possible paths forward.

One possible option is for the buyer and seller to renegotiate the purchase price so it better aligns with the appraised value.

This is one of many instances where a VA-experienced real estate agent is a potent ally, because they understand the NOV process through and through and can negotiate from a position of strength on your behalf.

If the seller agrees to lower the price, that can reduce or eliminate the gap and help keep the transaction moving.

Another option is for the borrower to bring funds to cover the difference between the appraised value and the contract price.

In the example above, that would mean bringing $20,000 in addition to any other required funds due at closing.

This can help the deal move forward, but it also means paying more than the value established for VA loan purposes, so it’s a decision buyers should weigh carefully.

If the borrower believes the value came in too low, they may be able to request a Reconsideration of Value (ROV).

An ROV is a request to review the appraisal again based on additional information that was not included in the original report. There is no guarantee the value will increase, but it can provide another opportunity to support a higher appraised value.

In some cases, the Tidewater process may also come into play before the value is finalized, giving the parties a chance to provide additional market data.

If the contract price exceeds the VA-established reasonable value and the gap cannot be resolved, the buyer may choose not to proceed.

The VA Amendatory Clause protects the purchaser from being obligated to complete the purchase in that situation and helps protect against forfeiting earnest money if the transaction falls through because the value came in low.

At the same time, the buyer still has the option to proceed with the purchase if they want to.

A VA Notice of Value is generally valid for a limited period, but the exact timeline can depend on the type of transaction and the lender’s process.

In many cases, refinance transactions follow a shorter validity window, while purchase transactions may remain usable longer if the contract is still active. If closing is delayed, the lender can explain whether the existing NOV remains valid or if an update is needed.

Borrowers will typically receive a copy of the Notice of Value through their lender as part of the appraisal or valuation process.

How it is delivered can vary. Some lenders send it electronically, while others may provide it through a portal, by email, or as part of the closing package. In general, borrowers should expect to receive the valuation documents before closing.

The Notice of Value helps borrowers understand both the value being used for the VA loan and whether the property has any conditions that still need to be addressed.

If the value comes in as needed and there are no outstanding issues, the loan can usually proceed. If the value comes in low or the property has required conditions, there may be additional steps before closing.

A low value does not always mean the deal is over. Depending on the situation, borrowers may be able to renegotiate the price, cover the difference, ask for a review of the value, or decide not to move forward.

If you’re prepping to buy, the best step you can take is to get preapproved with a VA-experienced lender, someone who works within this system every day and understands the process from beginning to end.