VA Renovation
A VA renovation loan may allow qualified borrowers to finance a home purchase and eligible repairs through one VA-backed loan. No-down-payment financing may be available, subject to VA entitlement, property appraisal, underwriting, and lender requirements.
Renovation limits, minimum project costs, and eligible improvements vary by lender. Common projects may include roofing, plumbing, electrical work, heating, air conditioning, and accessibility improvements. Renovation funds are held in an escrow account and released as approved work is completed.
Learn more in the official VA Home Loan Buyer’s Guide.
Types of Improvements
- New roof or roof repairs
- Heating and air conditioning
- Electrical and plumbing work
- Accessibility improvements
- Eligible kitchen and bathroom repairs
- Other lender-approved improvements
Eligibility
Borrowers must meet VA eligibility requirements and obtain a Certificate of Eligibility. Approval also depends on available entitlement, income, credit, property appraisal, renovation plans, contractor approval, and lender requirements.
Low Down Payment
Renovation
VA Loan
Sean, an active-duty Navy officer, and his wife, Melissa, fell in love with a 1950s bungalow. The home is in their desired school district, which is essential for their two young sons.
The Problem
During the inspection phase, the roof was discovered to have less than 1 year of remaining life and needed to be replaced, and Melissa wasn’t in love with the kitchen. The sellers were unwilling to pay for the replacement of the roof, and without it, the home would not be VA eligible for Sean and Melissa.
Results
After meeting the VA and lender requirements, Sean and Melissa used a VA renovation loan to finance the home purchase, roof replacement, and kitchen remodel with no down payment. Individual eligibility and loan terms may vary.
Interested in Applying?