Veterans can now apply for the Veterans’ Administration Renovation loan. This special mortgage loan can be used to either purchase or refinance a home. Traditional Veterans Administration loans only supply the money to make the actual purchase of the home. One of the things that makes this mortgage loan different is that it also includes the money needed to renovate or repair the home.

The VA Renovation Loan is only available to qualified veterans. As with the traditional VA loan, the Veterans’ Administration Renovation loan is available with 100% financing. This means that no down payment is required for eligible borrowers.

This Veterans’ Administration Renovation loan is arguably one of the best loans available to military veterans in the U.S. It offers extremely flexible borrowing terms, requires no money down, and allows for borrowers to complete necessary renovations and home repairs to make the home livable and comfortable.

This Veterans’ Administration Renovation loan is arguably one of the best loans available to military veterans in the U.S.

Advantages Over a Regular VA Loan

The Veterans’ Administration Renovation loan offers several advantages over a regular VA loan. In a typical scenario, a veteran could utilize a VA loan to borrow up to 100% of the house cost, using no money down. That’s really great unless the house needs repairs. In that instance, the veteran would have great difficulty getting a home equity loan to fund home improvement projects and renovations, because they borrowed 100% to buy the property. They have zero equity in the home. If the property needs a new roof, stairs, plumbing, etc., that veteran would have little or no resources to pay for the repairs and renovations.

With the Veterans’ Administration Renovation loan, the money for the repairs and renovations is built right into the original loan. There’s no need to go out and try to get financing for repairs and renovations because it’s already there. Plus, the Veterans’ Administration Renovation loan option comes with all the advantages of a traditional VA loan, including the 100% financing option.

With the Veterans' Administration Renovation loan, the money for the repairs and renovations is built right into the original loan. There’s no need to go out and try to get financing for repairs and renovations because it’s already there. Click To Tweet

What is the “As Completed Value”?

When the Veterans’ Administration Renovation loan amount is being calculated, eligible borrowers could borrow 100% of the value of the house. But if the house is in dire need of the repair or renovation, that value isn’t going to be very high. That’s why the “as completed value” is used. This is essentially the estimated value of the home after the repairs and renovations have been completed.

Who Qualifies for the Veterans’ Administration Renovation Loan?

You would need to apply directly in order to find out for sure if you or a loved one is eligible for the Veterans’ Administration Renovation loan. However, typically, those qualified would be a veteran, service member or qualifying surviving spouse of a veteran or service member.

What Are the Guidelines For a Veterans’ Administration Renovation Loan?

Of course, there are guidelines regarding the proposed property in order to qualify for the Veterans’ Administration Renovation loan.

In general, they are:

  • property has to be a primary residence – this means that you can’t use the loan to finance a second home, vacation home or a rental property
  • 640 minimum credit score
  • accessibility upgrades permitted – such as railings, ramps, etc.
  • refinance permitted – even if you already own the home, you can use this loan to refinance and renovate
  • 100% LTV- the 100% is calculated using the “as completed value”

This is an exciting new purchase and renovation option available to eligible veterans and surviving spouses.

The Veterans’ Administration Renovation loan is available through participating lenders. Your real estate agent can assist you with finding lenders who participate in this program.

Learn more about available VA benefits