When VA Appraisals Might Come Up Short: What Is The Tidewater Initiative?

Published On: May 22, 2019|Categories: Blog, Home Buyers, Jasper IN Real Estate, Mortgages|Tags: Tidewater Initiative, VA appraisal, VA home loans|

The VA appraisal process is quite different from a normal appraisal. During the VA appraisal, the appraiser doesn’t juts tell you how much a home is worth, but also decides what if any changes need to be made to the house before the VA will back the home loan. The lender doesn’t hire the appraiser themselves. They just contact the Veteran Administration and request an appraisal. Well, in 2003, something new was added to the whole thing. The Tidewater Initiative was re-affirmed by the VA in 2017, and you can see the update in the VA circular 26-17-18. It talks about for improving communication with appraisers. The Tidewater Initiative happens before the appraisal report is finished and ends up reducing the number of requests for appraisal rebuttals.

If the VA appraisal price comes up short, the appraiser will call the lender and let them know that they are “invoking the Tidewater Initiative.” That certainly sounds terrifying. It’s actually a very formal and specific process that benefits the veteran and can keep the mortgage deal from falling apart. The appraiser will provide a “Tidewater Notice” to the lender. The lender will inform the realtor or contact. They have two work days to return any additional information to the appraiser. They have two working days to send in additional comparable sales with verification that the sale closed. They can also include pending sales contracts along with a brief description of the differences of the pending sale and the property that is currently undergoing the Tidewater Initiative.

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