start portlet menu bar

Web Content Viewer

end portlet menu bar

It's not easy to find the home of your dreams, but you may find a home that with a few repairs or a little renovating, can become your dream home. If you currently have a VA home loan and want to make improvements or want to buy a fixer-upper, there are programs available that can help finance the work.

Home improvement loans for veterans

VA home renovation loan.

The VA home renovation loan allows military members to purchase a home and roll improvement costs into the total loan amount or take out a second loan to pay for renovations. Home renovation loans are good for foreclosures and short sale purchases or for an existing home in need of some updating.

Pros of a VA home renovation loan

  • Up to $75,000 in home renovations and repairs toward the purchase of a new home, but an inspection is needed when a new home buyer asks for over $50,000 in repairs.
  • No down payment.
  • Certain fees such as an inspection, title and permit can be financed into the home loan
  • You can take out a second loan to pay up to $35,000 for renovations if you already have a VA loan.
  • You can qualify for a home renovation loan with no minimum repair amount, so you can use this loan for a small repair.

Considerations of a VA home renovation loan

  • No major renovations are permitted such as structural modifications like adding on a new room or luxury additions like a patio or pool. The length of the project cannot exceed four months from start to completion.
  • Maximum repair amount is based on the VA county loan limits, so you need to make sure your loan stays within the range.
  • VA home renovation loans may take a little longer to close because you need to secure a VA contractor, obtain up to three bids, and secure the permit and appraisal as well as other closing paperwork before the loan can be funded.
  • Must meet minimum property requirements before you purchase a home in need of repair.
  • Must pay a VA Funding Fee as an additional construction fee of up to 2% of the loan's value.

VA energy efficient mortgage loan

This is a loan that provides up to $6,000 for energy-efficient upgrades. Here are some energy-improvement projects related to your home that you can finance with this loan:

  • Solar heating and cooling
  • Updating a furnace
  • Storm doors or windows
  • Caulking   weather stripping
  • Programmable thermostats
  • A new HVAC or AC unit (this only includes permanent upgrades, not window AC units)

Pros of a VA energy efficient mortgage loan

  • No down payment
  • No mortgage insurance
  • No energy audit
  • You can do the work yourself

Considerations of a VA energy efficient mortgage loan

  • Must pay the VA funding fee
  • Extra money is still subject to lender approval

VA supplemental loans

These loans allow veterans to make home improvements or repairs on a new or existing VA loan. According to the VA, they can be used for "improving the basic livability or utility of the property."

Pros of a VA supplemental loan

  • A VA supplemental loan can be amortized for 30 years
  • Can either take the VA supplemental loan as a second loan or add to your existing mortgage
  • Can use up to 30 percent of the loan for non-fixtures that relate to the purpose of the loan. For example, you can get a new oven if you're redoing your kitchen, but not if you're updating the bathroom.
  • Lenders can't increase your interest rate above what you currently have

Considerations of a VA supplemental loan

  • Can't use on a loan that's been paid off or on non-VA loans
  • You may have to wait longer for approval if you choose a different VA lender for your new loan
  • Can't use the loan for non-necessary luxury items like a swimming pool

There are a number of home improvement and remodel finance options when you have a VA loan. Contact Freedom Mortgage and we'll help you sort through your VA loan options to finance your home improvements.

start portlet menu bar

Web Content Viewer

end portlet menu bar

Contact Us

Get started today by getting a personalized evaluation of your home loan options from Freedom Mortgage.

877-220-5533