Need information on VA loans that have money for home renovations

[Rebecca Webbe]

Does anyone know if there are VA loan options similar to a 203k FHA loan that has money for renovations rolled in?

Thanks!

[Joel Allen]

@Rebecca Webbe

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.

[Rebecca Webbe]

Thank you very much for the information!