Is the VA Rehab Loan a unicorn?

[Erin Estes]

I've heard of this elusive VA Rehab loan that allows a buyer to purchase a house and get cash to do rehab work. I'm looking at a short sale that's $335,000 and it's after repair value would be pushing $400,000. Does anyone know if such a program exists or has anyone used one in the past? Does anyone know of any lenders that are currently (Spring 2015) offering such a loan?

[Account Closed]

I used iMortgage for my VA Rehab loan on my personal residence and had no issues with them. Since this is an unconventional lending instrument, you have to make sure all your ducks are in a row (contractors willing to perform the work, dates of work start/completion, all additional paperwork completed, etc), but it was well worth it.
Prior to this, I was looking into purchasing a piece of land and building a home using a New Construction VA loan. Finding a lender willing to do this was quite difficult, but ended up finding FGMC http://fgmc.com . They will do this type of loan. The only reason I didn't move foreword is because I was trying to build a multi family to house hack - they will only finance SFRs.
Hope this helps, feel free to contact me regarding details.