For Veterans and active-duty service members, homeownership is a well-deserved benefit. But what if you find a home that needs a little TLC? With a VA Renovation Loan, you can finance both the purchase and renovation of a home under one loan, making it easier to turn a fixer-upper into your dream home.
What is a VA Renovation Loan?
A VA renovation home loan allows eligible Veterans and service members to buy a home that needs repairs or improvements and finance the cost of renovations into their mortgage. This means you can customize a home to meet your needs without having to take out a separate home improvement loan.
Benefits of a VA Renovation Loan
VA Renovation Loans offer several advantages over traditional financing, including:
• No Down Payment – Just like standard VA home loans, VA renovation financing allow eligible borrowers to finance 100% of the home’s cost, including renovations.
• No Private Mortgage Insurance (PMI) – VA loans do not require PMI, which helps keep your monthly payments lower.
• Competitive Interest Rates – VA loans typically offer lower interest rates compared to conventional renovation loans.
• Flexible Credit Requirements – The VA loan program is more lenient on credit score requirements, making homeownership accessible to more Veterans.
• Combine Purchase and Renovation Costs – Instead of taking out multiple loans, you can finance the cost of home improvements into your mortgage, simplifying the process.
Who Qualifies for a VA Renovation Mortgage?
To be eligible for a VA renovation mortgage, you must meet standard VA loan requirements, including:
• Being an active-duty service member, Veteran, or eligible surviving spouse.
• Meeting minimum service requirements set by the VA.
• Obtaining a Certificate of Eligibility (COE) from the VA.
• Meeting lender-specific credit and income requirements.
The VA Renovation Loan Process
1. Find a VA-Approved Lender – Work with a lender, like SWBC Mortgage, that offers VA renovation loans and can guide you through the process. You can find a local Loan Officer near you here.
2. Select a Home and Get an Inspection – Choose a home that meets your needs and have it inspected to determine necessary repairs or improvements.
3. Hire a Contractor Registered with the VA – The VA requires that all renovations be completed by a licensed contractor who has obtained a Builder ID from the VA.
4. Obtain a Renovation Estimate – Work with your contractor to get a detailed estimate of the renovation costs.
5. Loan Approval and Closing – Your lender will review your loan application, including the renovation plans, and finalize the approval process.
6. Begin Renovations – Once the loan closes, the renovation work can begin, with funds disbursed to the contractor as work is completed.
7. Final Inspection and Move-In – After renovations are complete, a final inspection ensures that the work meets VA standards, allowing you to move into your newly renovated home.
Get Started on Your Home Renovation Journey
A VA Renovation Loan can help Veterans and active-duty service members turn an outdated or fixer-upper home into a perfect living space. If you’re interested in learning more about this powerful home financing option, contact SWBC Mortgage today. We are honored to serve those who have served and can guide you through the process to make homeownership and home improvement more accessible.