OFFER MORE OPPURTUNITIES FOR VETERAN TO BUY

Did you know that by using a VA Renovation Loan, your client may be able to purchase a home that doesn't meet the VA Minimum Property Requirements (MPR)? Not only does this program finance the purchase of a home, but it can also provide up to $50,000 toward it's renovation or repair - all in one loan!

Whether a roof needs to be re-shingled or flooring needs to be replaced, a VA Renovation loan allows VA borrowers to close on the property and make the necessary repairs for the home to meet the VA MPRs. And just like a regular VA purchase loan, qualified VA borrowers can put zero money down and even access Jumblo loan amounts

VA RENOVATION AT A GLANCE:

Zero Down Payment

Up to $50K for Repairs or Improvements

Satisfy VA MPRs

Jumbo to $1,089,300

Program Highlights

Purchase existing dwelling

Customize improvements

One loan closing

Funds to purchase and rehabilitate

100% financing available

Maximum loan: 100% of “As Improved” appraised value

Upfront guarantee fee may exceed “As Improved” value

No future loan amount changes or re-amortization

Key Benefits

  • Correct dwelling deficiencies

  • Revitalize existing housing stock

  • Retain personal reserves post-closing

Eligible Loan Costs:

Interior Improvements:

  • Modernize kitchens, bathrooms, flooring

  • Add accessible features for disabilities

  • Additions, structural alterations, reconstruction

  • Energy efficiency upgrades

Exterior & Safety Repairs:

  • Install/repair septic systems and water wells

  • Remove safety/health hazards

  • Repair existing amenities (e.g., pools, saunas, accessory units)

Repair Types & Limits

Non-Structural Repairs:

  • Finance up to $35,000

  • No minimum repair cost

  • Must be habitable

  • Contingency reserves:

  • 10% if utilities

  • 15% if utilities OFF

Structural Repairs:

  • Finance above $35,000

  • Requires certified inspector and full inspections

  • PITI reserves up to 6 months if dwelling uninhabitable

  • Contingency reserves:

  • 10% if utilities ON

  • 15% if utilities OFF

Loan Types

Limited Renovation Loan

For non-structural repairs (≤ $35,000)

Standard Renovation Loan

For structural repairs or high-cost improvements

Loan Types

Limited Renovation Loan

For non-structural repairs (≤ $35,000)

Standard Renovation Loan

For structural repairs or high-cost improvements

Eligibility

Single-family primary residences only

🏡 What Is a VA Renovation Loan?

Also known as a VA rehab loan, this program allows eligible veterans and active-duty service members to finance both the purchase of a home and the cost of renovations in a single VA-backed mortgage. It’s designed for homes that need repairs to meet VA’s Minimum Property Requirements (MPRs).

  • Occupancy: Must be a primary residence

🛠️ Renovation Scope and Limits Allowable Improvements

  • Safety and livability upgrades (e.g., HVAC, plumbing, roofing)

  • Accessibility enhancements

  • Energy-efficient upgrades

  • Cosmetic repairs (e.g., flooring, painting)

  • No luxury upgrades or major structural changes

Loan Limits

  • Based on the “as-completed” appraised value of the home

  • Renovation costs typically capped at $50,000

  • Closing costs (e.g., VA funding fee) may be rolled into the loan

🧾 Loan Structure and Process

  • Single loan for purchase + renovation

  • Requires itemized contractor quotes

  • VA appraiser determines as-completed value

  • Funds disbursed in stages as work progresses

  • Renovations must be completed within 120 days

  • DIY renovations are not allowed; contractor must be VA-approved

Eligibility

Single-family primary residences only

Must be in USDA-approved rural areas

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