- VA buyers can appeal a low appraisal through either the VA Tidewater process or a Reconsideration of Value (ROV).
- Tidewater is an early-stage VA appeal process before the appraisal is finalized.
- ROV is a more formal appeal process used after a final value is issued through the Notice of Value (NOV).
The VA appraisal is a crucial, two-part step in the homebuying process.
One part of the appraisal reviews the property's compliance with general health and safety standards, known as the Minimum Property Requirements (MPRs). The other part of the VA appraisal is determining the home's value.
Receiving a lower-than-expected appraisal can be frustrating for homebuyers, so let’s talk about your options to challenge it.
What Happens When a VA Appraisal Comes in Low?
When a VA appraisal is lower than the agreed-upon purchase price, it means the property has been valued below the negotiated price. While this can impact financing, a low appraisal does not automatically end the transaction. VA buyers have two potential appeal paths:
- The VA Tidewater Initiative (before the value is finalized)
- A Reconsideration of Value (after the value is finalized)
What is VA Tidewater Policy?
The VA's Tidewater process exists to combat low VA appraisals by allowing the appraiser to request additional comparable sales and market data to support the sale price before finalizing the VA appraisal.
Because Tidewater occurs before the Notice of Value is issued, it is typically faster than an official reconsideration of value, as you’ll see below.
VA Tidewater Process
The Tidewater process is relatively simple:
- VA appraisers determine the home's value and notify the lender that it is likely to come in below the purchase price.
- Alerting the lender that the property falls under the contract price is known as invoking the "Tidewater Initiative," or Tidewater for short, as listed in VA Circular 26-17-18.
- The appraiser explains that the recent comparable home sales don't support the sale price.
- The lender has two days to provide the appraiser with additional comparable home sales that support the purchase price.
- Lenders typically turn to the buyer's real estate agent to help find recent comparable sales.
- The appraiser will take those additional comps and issue the final appraisal report.
- If the Tidewater process doesn't lead to a sufficient increase in value, the appraiser must provide a written explanation as to why.
Typically, a lender's Staff Appraisal Reviewer, or SAR, issues a final Notice of Value (NOV) on the property based on the appraiser's report. The NOV makes the home's value official for the VA's purposes.
Once the property's lower appraised value is official, buyers can seek a more formal appeal through what's known as a Reconsideration of Value (ROV).
What is the VA Reconsideration of Value (ROV)?
The Reconsideration of Value (ROV) is the formal process of appealing a low VA appraisal after the appraiser has made their determination. Since an ROV challenges the finalized value, it requires more documentation than Tidewater.
While there is no guarantee the ROV will increase the appraisal, it at least gives buyers a shot at a higher appraisal value and a successful VA purchase. Make sure to talk with your lender about how best to proceed with a Reconsideration of Value before taking any action.
Reconsideration of Value Process
The VA recognizes that appraisal mistakes can happen. Value-adding features can be overlooked, or suitable comps may have been left out. Appraisers might have mistakenly calculated square footage or used a comp in the original appraisal that isn't comparable (maybe recent renovations weren't known or factored in). Reasons such as these are why the VA set up the Reconsideration of Value process.
The first part of the process is working with your lender and real estate agent to document the following:
1. Comps or Market Data That Weren’t in the Initial Appraisal
You can submit up to three recent comparable home sales not included in the original appraisal, which closed before the appraisal report's effective date. This information needs to be entered into a Reconsideration of Value grid, and you'll need to include printouts from the Multiple Listing Service (MLS) for each comparable sale. Also, write a brief summary of why these comps are better than the ones used by the VA appraiser.
2. Evidence of Errors
Have your agent scrutinize the original appraisal report. Does the report contain faulty information? Were old sales used? Are all comps similar to the subject home in size, age and condition?
You'll need both a narrative summary outlining the perceived problems and evidence to support your claims.
3. A Letter From the Borrower
The letter is a written request for Reconsideration of Value, including the borrower's rationale for increasing the appraised value and their proposed value. This letter should be concise and focused on facts, not emotion.
The next step is submitting your ROV request to the correct VA Regional Loan Center for review. You’ll work with your loan officer to complete this step of the process.
The final step is waiting on the VA to make a determination. If the ROV fails, you still have a few options.
How Long Does a VA Reconsideration of Value Take?
A VA Reconsideration of Value typically takes no more than a few days, but can take up to several weeks in some cases. There are many factors to take into consideration, so wait times for an ROV may vary.
What if the ROV Fails?
Every homebuying scenario is different, but appraisal values can be tough to predict and tough to challenge. Buyers can be crushed upon learning that the Reconsideration of Value has been denied.
You typically have three options if that happens:
1. Ask the Seller to Lower Their Asking Price
You can point to the low valuation and suggest the seller’s home isn’t worth quite what they were hoping. Not all sellers will bite, but it might be worth exploring, depending on your situation. It’s important to talk with your real estate agent about how best to negotiate a lower purchase price.
2. Make Up the Difference in Cash
Buyers can pay the difference between the purchase price and the appraised value out of pocket. This isn’t always easy or without risk: part of the consideration is if you want to pay more than a home might be worth?
If you ultimately decide to make up the difference in cash, you may be able to lower your VA Funding Fee by putting down at least 5%.
3. Walk Away From the Deal
VA loans protect a buyer’s earnest money if the home fails to appraise. This safeguard is a unique document called the VA Amendment to Contract, which allows prospective buyers to get their earnest money deposit back if the appraisal comes in low.
Talk with your loan officer if you have questions about VA appraisals and how to handle a low valuation.
After Challenging a Low VA Appraisal
Appraisal values can be challenging to predict, and even well-prepared ROV requests don’t always result in a higher valuation. Once the Tidewater and ROV processes are complete, buyers need to wait for the VA’s determination and review the options available to them.
There is no guaranteed timeline for an ROV decision, and outcomes depend on the strength of the supporting data. In the best-case scenario, the final value will support the purchase price and allow the loan to move forward.
If the value comes in low, buyers still have options. You may be able to renegotiate with the seller, adjust your offer or explore other paths with your lender.
How We Maintain Content Accuracy
Our mortgage experts continuously track industry trends, regulatory changes, and market conditions to keep our information accurate and relevant. We update our articles whenever new insights or updates become available to help you make informed homebuying and selling decisions.
Current Version
Jun 2, 2026
Written ByChris Birk
Reviewed ByTara Dometrorch
General copy updates and fact checked by Tara Dometrorch, underwriting team lead.
Veterans United often cites authoritative third-party sources to provide context, verify claims, and ensure accuracy in our content. Our commitment to delivering clear, factual, and unbiased information guides every piece we publish. Learn more about our editorial standards and how we work to serve Veterans and military families with trust and transparency.
Related Posts
-
VA Loan Down Payment RequirementsVA loans have no down payment requirements as long as the Veteran has full entitlement, but only 3-in-10 Veterans know they can buy a home loan with zero down payment. Here’s what Veterans need to know about VA loan down payment requirements. -
5 Most Common VA Loan Myths BustedVA loan myths confuse and deter many VA loan borrowers. Here we debunk 5 of the most common VA loan myths so that you can borrow with confidence.
