The VA Renovation Loan, AKA, The VA Reno!

Updated For 2024: Access Up To $50,000.00+ For Home Repairs and Updates.

• We offer a full suite of portfolio renovation loans at $50,000 and $200,000 amounts and conventional portfolio options, allowing up to $2,000,000.00 in extensive renovation work.

• Repairs rolled into one loan are easier to qualify for than a 2nd mortgage, also known as a home equity loan, and come with one fixed-rate mortgage.

• Our VA Renovation program allows for product terms of 10, 15, 20, 25, and 30-year terms, typically with interest rates lower than comparable FHA 203k, FNMA Homestyle®, and USDA Repair Escrow programs.

• Unlike other renovation loan programs such as the FHA 203k, Fannie Mae Homestyle®, and USDA Repair Escrow, this VA program requires no mortgage insurance (MI). So, if you are a Veteran, this is the product you want to choose over the other options available if no structural repairs are required.

• For Purchase loans, this product can be used on existing built homes, foreclosures, short sales that need repair and design updates, and minor updates to existing homes for purchase or refinancing. The repairs can be completed by only 1 General Contractor (GC), which may be able to use multiple subcontractors if required underneath the GC.

• The borrower cannot complete any of the repairs themselves or act as the general contractor, and ALL improvements must be achieved in a six-month term. The work must begin within 30 days of the loan's closing and not cease for more than 30 days. The GC must submit a qualifying bid outlining all work to be completed within 180 days.

• Draws and disbursements are determined based on the percentage of work completed, and no mortgage payment reserve can be financed in the property. Additionally, the property cannot be vacant for more than 15 days. A 10% contingency reserve is required on the VA renovation loan for any overages or miscalculations in repairs.

What’s Eligible and Ineligible With a VA Renovation Loan?

• Eligible improvement types are Eliminating health and safety risks, connecting to public water & sewer systems, repairing or replacing plumbing, heating, AC, and electrical systems, making changes for improved functionality and modernization, new roofing as long as structural integrity is intact, siding, gutters, and downspouts, energy conservation improvements, improving accessibility for persons with disabilities, repairing fencing, walkways, and driveways, new refrigerator, cooktop, oven, dishwasher, built-in microwave, washer, and dryer, repairing or removing an existing in-ground swimming pool, installing, repairing or replacing exterior decks, patios, or porches, covering lead-based paint issues.

• Ineligible improvements that are structural or considered luxury are not allowed. These would be repairing foundation issues, oil tanks (repair, removal, remediation), any repair/installation for private water systems –(Wells), any repair/installation of private waste management systems (Septic Systems, Lagoon, Cesspools, Pits, etc.), mold remediation, moving another structure to the site or room additions to the exterior of the property, landscaping site improvements, new swimming pools, outdoor saunas, whirlpools, or bathhouses, tennis or basketball courts, satellite dishes, barbeque pits, outdoor fireplaces or hearths. Additionally, tree surgery is not allowed unless it endangers existing improvements to the property. Also, any repair completed by self-help or “do it yourself” or that takes more than four months to finish is not eligible. If the scope of work requires more than three draws per specialized contractor or the proposed repairs/improvements need detailed plans, engineering, or architectural exhibits.

• Eligible property types are a bit different for VA than its FHA counterpart. We allow renovations on all eligible, doublewide, and triple-wide manufactured homes, modular homes, single-family, multi-family, ICF, SIP, Barndominiums, Condos, Metal homes, and other unique home styles.

• Ineligible property types are singlewides, demolished or razed homes, relocated structures, mixed-use properties, commercial properties, co-op properties, investment properties, or mobile homes on leased land. We may have investment renovation programs available under our portfolio programs, but this is not a VA-eligible program.

• There are specific requirements of the General Contractor, Insurance and Liability Requirements, Appraisal Requirements, Bid Requirements, Inspection, and Disbursement Requirements, and specific fees can be rolled into the closing. You will want to discuss these additional requirements with your banker once you decide to move forward.

• Additionally, since these loans are treated as New Purchase or Rate and Term Refinance, the maximum allowable cash back to the borrower cannot exceed $500.00. However, if extra cash is needed, speak to a banker to access additional personal cash-out loans of up to $50,000.00 before or after closing the loan.

• 620 Minimum Credit Score Requirement.

If you are ready to start your VA Reno Loan today, complete an eligibility request or call us to speak directly. We’re eager to help you with your loan and sincerely appreciate your service to our country!

Should you require repairs of more than $50,000 or need to have the renovation completed on second homes or investment property, you will want to look at our FHA 203k Standard, FNMA Homestyle® renovation, or portfolio programs. You can view our renovation loan guide here, which is updated for 2024.

TOUGH VA RENO REFINANCE LOANS DON'T SCARE US!

Most banks and loan professionals have never closed this loan before; we’ve been doing them for years!

We Offer Unique Loan Products-Such As 100% VA One-Time, Two-Time Close & Portfolio Construction, Cash Out, Jumbo, & Manufactured Home Loans In All 50 States.

Aside from VA Home Loans, we offer so many options. From Construction To Bridge Loans, Down Payment Assistance Programs, Doctor Loans, Veterinarian Loans, Nurse Practitioner Loans, First Responder Loans, Foreign National, ITIN, and Extensive Renovation Projects, even Manufactured Homes, each loan is as unique as the home! Treating our customers with extreme care and attention to detail, we can’t wait to serve you. We’re solution-oriented, efficiency-motivated, and highly skilled bankers working for you; let us help you today!