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.
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.
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.