VA Loan and Appraisals Help

[Rebecca M.]

VA Appraisal Scenario:

If you are under contract to purchase a home with a VA backed (Veterans) home loan, and the VA appraiser completes the appraisal well after the inspection contingency expires, will the buyer get their earnest money back if the VA's required repairs are too great for either buyer or seller to manage, even if the home appraised high enough?

After seeing the inspection report I have doubts that the VA will buy off on a few things. For example, there is no insulation under the floor or around pipes, part of the roof needs repair and half of it appears to have 3 layers of roofing material, single pane windows presenting a moisture problem, some failing siding, etc. I don't know what the VA will allow..

The Realtor said the earnest money would be returned if the appraisal doesn't come in high enough and a deal can't be made, but I wanted to get an idea if there is anything we should watch for or specific financing contingency language we should check for regarding the VA appraiser's required repairs. Anyone have insight or experiences they would be willing to share regarding VA appraisals in general?

Thank you!