Renovation

VA Renovation Loan

VA loans are for eligible Veterans, active-duty service members, and qualifying surviving spouses in purchasing, (or refinancing) of a home and its necessary repairs/improvements in a single VA-guaranteed mortgage.  Limited to $75k in repairs

Reasons to choose a VA renovation loan

A VA renovation loan stands out because it rolls your home purchase (or refinance) and renovation expenses into one convenient mortgage—with no down payment and a single closing—so you can tackle fixer-uppers without draining your savings.

30-year VA Renovation guidelines

To qualify for a VA reno loan, you will need:

No down payment required (100% financing for eligible borrowers with full entitlement)
No stated minimum credit score. 580+ is recommended
Property Requirements: Can be used to buy a 1-4 unit property. You must occupy as your primary residence
Debt-to-income: no stated maximum
Loan Limits: No max loan limit. Repairs are limited to $75,000
Renovation Guidelines: Must use licensed contractors, funds are disbursed in stages (draws), based on completed work. 10% contingency reserve is required.

Apply for a VA renovation mortgage

No, however, you are able to obtain a 4% seller credit, which may be sufficient to cover substantially all of your closing costs

On a typical VA purchase or refinance, Scout Advisors can close in as little as 14 days. With a renovation loan, we suggest a minimum of 45 days (60 days is ideal) to allow sufficient time to shop contractors and to obtain renovation approval.

Typically work should be completed within 120 days.

Eligible improvements are for the healthy & safety, kitchens, baths, additions, etc.  Cannot be used for luxury items (hot tubs, pools, etc). Cannot be used for major structural changes.

Generally no—must use licensed contractors (FHA-approved where required). Limited DIY may be allowed for very minor items in some cases, but most work requires professionals. No full owner-builder labor credit for the loan

Have additional questions?

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Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply. Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact your Scout Advisors loan officer for current rates. Restrictions apply.