What Is the VA Appraisal Waterfall?

On July 22, 2022, the U.S. Department of Veterans Affairs released Circular 26-22-13, titled “Procedures for Alternative Valuation Methods.”

In practice, this rule is known as the Appraisal Waterfall. It gives lenders and eligible VA borrowers more flexibility when traditional appraisals are delayed or difficult to complete.

Normally, VA appraisals require an in-person inspection by a VA-approved