VA Renovation Loans For Veterans Now Available
May 15, 2017 by Jimmy Sgambelluri
VA Renovation Loans: The wait is finally over. If you are eligible for a VA home loan, you are now able to renovate the home you are purchasing or your existing home secured with a VA mortgage.
Joe & Marta just renovated their home with a VA renovation home loan.
Use this loan to combine The Cost Of your renovations and your mortgage into one.
VA Renovation Loans Combine The Cost Of Your Home Purchase Or Refinance With Home Improvement Financing Into One Loan And Closing.
This brand new loan product provides a convenient way for eligible veterans to make renovations, repairs, or improvements of the "as completed" appraised value of the property. Until now you had to use the present value of your home in order to make any improvements.
We simply get a contractor estimate and submit the estimate to the board certified VA Appraiser. The appraiser will add the improvements to the appraisal and determine a value "after completion" for the mortgage lender.
Learn more about the renovation process by grabbing our Free 22 Page Renovation Guide here.
Using your VA eligibility to get a renovation loan will simplify the process by eliminating the need for a 2nd mortgage, a HELOC, or other costly financing option.
While VA rehab loan program is a great for a lot of Veterans, but it may not be a perfect fit for everybody. Some improvements and repairs are not permitted. The list of both Allowable Repairs and Non Allowable Repairs is located below.
What Repairs & Improvements Can I Do Using VA Renovation Loans
Allowable Repairs
- Roof: Repair or Replace
- Gutters / Downspouts: Install / Repair / Replace
- Insulation: Ceilings / Walls / Asbestos Removal
- Siding / Windows / Doors
- Paint: Interior / Exterior / Lead Paint Abatement
- Kitchen: All Appliances / Cabinets / Total
- Electrical: Repair / Replace / Recondition All
- Plumbing: Repair / Replace / Recondition All
- Repair / Replace HVAC or Other Systems
- Repair / Remove In-Ground Swimming Pool
- Installing or Repairing Fences, Walkways, & Driveways
- Repair / Replace Flooring, Sub-flooring, Tile, Carpet, Hardwood Floors
- Termite Treatment / Damage Repair
- Repair / Replace / Recondition Well & Septic
- Foundation Repair
- Weatherization items / Repairs / Improvements
Non-Allowable Repairs
- Detached Garages
- Repairs Performed By The Veteran
- No Swimming Pool Installations. Repairs Are OK.
- Improvements that do not conform to the surrounding neighborhood.
- Any new construction including room additions.
- Landscaping or similar site improvements.
- Rehabilitation activities that require more than 2 payments per specialized contractor.
- Major rehabilitation or Major remodeling
- Require plans or architectural exhibits
- Television Antennas and Satellite Dishes
- Results in work not starting within 30 days after loan closing
- Borrower is unable to occupy at closing or within 30 days
Most projects are fairly clear and straight forward, however, there can be some hurdles. Listed below are the hurdles that could most likely become a nuisance.
Project Maximums
- Maximum time to completion = 90 Days
- Maximum Repairs: 25% of after completed value
- 41% Debt To Income ratio (No Exceptions)
Eligible Properties
- Single Family Homes
- Detached Condominium's that are approved by the VA
- Planned Unit Developments
- Townhomes
Got questions or need more information on VA Renovation Loans, Simply post a comment below or, contact Jimmy Sgambelluri today by calling 757-287-4098.
