VA Renovation Loan
A Veteran Administration or simply VA renovation loan is a program that provides financing for property updates and repairs. This program provides funding that covers the current value of the property as well as the cost of remodeling and repairing the property. This kind of loans, however, are usually buyers who want to purchase a property that is not in a very good condition, and yet the seller is not willing to spend money to renovate it.
- – The renovation cost cannot exceed $50,000.
- – The home can be a new home purchase or a refinance.
- – It can only be done for primary residences.
- – Construction needs to be completed with 4 months of closing date.
- – General contractor must meet insurance guidelines.
- – 620 FICO sore.
Low mortgage rates
The VA renovation loan program offers the lowest rates for military personnel, veterans or their families to purchase a home. Unlike other financing programs, this one can provide full amount to buy a home, meet total costs of repairing and other updates and other expenses of the house. As a home buyer, this option will enable you to be able to save a considerable amount of money. Unlike other forms of financing, the VA renovation loan allows one to acquire and own a home at very low rates fully.
Minor repairs allowed
There are no restrictions on what you can do to your home as far as repairs are concerned under this program. Unlike other forms of financing, the VA renovations loan allows for any kind, whether minor or major, and you can even include cosmetic repairs as well.
The loan is designed in such a way that it allows for full financing of the property. Whether you are purchasing or just doing repairs, you will be able to get money that meets the full expenses of the renovations. You will agree with me that this is not usually the case with other types of loans, where you will have to meet a certain percentage of the cost on your own.
Am I eligible for the program?
The VA renovation loan is not for everyone who wishes to get it. There are some specific requirements that every applicant has to meet. Some of these requirements include the following:
The VA renovation loan program is meant for the US military personnel, and as such, for anyone to qualify, you must be an active duty member of the US military, a veteran, or surviving spouse.
Also, the repairs you want to undertake will have to undergo scrutiny. The rules and regulations of the program require that the repairs be minor remodeling or cosmetic in nature, and must not be on the list of the ineligible repairs. It will also be remembered that the repairs need not go beyond four months of closing.
Also, as a borrower, you are not allowed to have more than one general contractor for the work. More so, the contractor must be registered with the VA. At the same time, the contractor is required to carry through insurance through the current general insurance liability policy.
As it is with any other type of loan, however, one might have all the above but still fail to secure this kind of loan. So before you start pursuing it, it is important that you check whether or not you qualify for the loan.
If you are interested in learning more or starting the va renovation loan process, contact us by filling out the form or calling us today!