Financing Using a VA Renovation Loan

[Jerry Padilla]

Thinking of Using the BRRR strategy? Take Advantage of the VA Renovation Loan.

VA Renovation Loan

Is available on SFR, PUDs and VA approved Condo's. You can make repairs or improvements up to 35% of the "As Completed" value of the property. The improvements must be permanently affixed to the property, and add value.

180 day limit to completing the repairs.

10% Contingency reserve is required. (15% required if structural repairs or no utilites on)

Allowable Repairs:

Maximum repairs 35% of the after complete value.

Roof: repair or replacement (covering, underlayment)

Gutters/downspouts: install/repair/replace

Insulation: ceilings/walls/asbestos removal

Weatherization items/repairs/improvements

Siding/windows/doors

Detached or Attached Garage - new build or repairs

Paint: interior/exterior/lead paint abatement )by certified LBP contractor)

Kitchen: all appliances/cabinets/ total

Electrical: repair/replace/recondition all

Plumbing: repair/replace/recondition all

Repair/Replace HVAC or other systems

Repairing or removing an in-ground swimming pool

Landscaping

Installing or repairing fences, walkways and driveways

Mold remediation or mold removal

Handicap accessibility improvements

Flooring/subflooring/tile/carpet/wood

Termite treatment/damage repair

Repairing or replacement of well and septic- *See appraisal section of the guidelines for specific requirements

Foundation Repair

Room Additions

Finish Basements and attics

Removal of outbuildings or old manufactured home

Repairs That are Not Allowed:

• Repairs performed by the borrower
• Swimming Pool Installations (Repairs allowed.) No luxury items such as outdoor kitchens/BBQs/Saunas, etc.
• Improvements that do not conform to the surrounding neighborhood
• Results in work not starting within 30 days after loan closing.
• Television antenna and satellite dishes.
• Improvements for Mixed Property Use
• SFR conversion to a 2 unit
• Relocated Property
• Projects that will take more than 180 days to complete