VA Rehabilitation

A VA guaranteed loan program that allows homeowners to purchase or refinance a home and fund up to $35,000 in repairs and improvements. The goal of this loan is to make a home meet the minimum standards to qualify for VA financing.

Renovation loans can be done as a purchase or a refinance transaction

This rehabilitation loan is the same concept as the other rehabilitation loans as you take out 1 loan for the purchase or refinance and roll in the costs to improve the property.

Who can get a VA renovation loan?

Anyone who is VA-loan eligible is able to get approval for a VA renovation loan. This includes current VA loan homeowners. A VA renovation loan can also be used for refinancing to fund upgrades to your home. This may be a good way to avoid using a cash-out refinance or getting a second mortgage.

To use this loan program as a refinance, homeowners must still follow the same improvement restrictions as new homebuyers.

You can’t use a VA renovation loan to remodel every part of your home. Only VA-approved repairs, renovations, and replacements are allowed. This is to ensure that the home is livable to meet VA minimum property standards. The goal of this loan type is not to finance your dream-home remodel — for that, you’ll need a different loan type.

Common improvements allowed by VA rehabilitation loans include:

  • Roof repairs
  • Floor repairs
  • Electrical and plumbing repairs or replacements
  • HVAC repairs or replacement
  • Paint (if lead paint is currently in the home)
  • Foundation repairs
  • Energy-efficiency upgrades

The VA doesn’t specify a minimum or maximum allowable amount for renovation funds. So, if you qualify and only want to make $5,000 in renovations, that’s completely acceptable. That said, we will allow up to $35,000 in repairs and improvements.

The guidelines used for this program are mostly the same as the VA Loan Program. Please review the guidelines on our VA loan page.

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PLEASE NOTE: LOAN PRODUCTS AND THEIR GUIDELINES CAN CHANGE AT ANY TIME.

DISCLAIMER: This is not an offer to make a loan or to make a loan on any particular terms. All loan applicants must qualify under underwriting requirements and satisfy all contingencies of loan approval. Rates and terms subject to change without notice. Norcom Mortgage NMLS ID # 71655 (www.nmlsconsumeraccess.org)