Standard VA home loans are intended to put military members and veterans into move-in ready homes that don't require significant repairs.
However, there is a separate loan product called the VA Renovation loan, which essentially packages a home purchase loan and a home improvement loan into a single product. This allow veterans to purchase a home in need of renovation/repairs and fund those renos/repairs as part of the mortgage. The general eligibility criteria for a VA Renovation Loan mirror the standard VA loan, but it does require extra steps because it involves quotes and work from a contractor registered with the VA.
Not every lender offers the VA Renovation loan, and lenders may have different limits/overlays. For example, the lender I work for has a $50K cap on the renovation cost for our VA Renovation loans.