Hey everyone,

I'm looking at purchasing a property that currently has no finished flooring. Based on what i can see, most of the needed renovations appear to be cosmetic, although i haven't had an inspection completed yet, so i understand that could change.

I spoke with my lender about using a standard VA loan, and i was told the property would need to meet the VA's minimum property requirements before closing. In its current condition, particularly with the missing flooring, my lender does not believe it would pass VA inspection. They suggested looking into a VA renovation loan instead.

The issue I'm running into is that, according to my lender, the renovation work would need to be completed by a licensed, bonded, and insured contractor.

This would be my first deal, and my original strategy was essentially a live and flip house hack. I plan to owner occupy the property for at least two years, complete most of the cosmetic renovations myself, and build some sweat equity. I'm comfortable with taking my time with the renovation, so speed isn't a major concern.

I'm trying to determine the most practical way to structure the purchase while still being able to perform some or most of the work myself.

A couple possibilities I've been considering are:

• Becoming licensed and insured GC myself. Would a VA renovation lender allow me to act as the contractor if i met all of their licensing, insurance, and other qualification requirements? Or do lenders generally prohibit borrowers from acting as their contractors?

• Taking care of the necessary repairs before closing: Could i negotiate a purchase contract where the seller allows the minimum repairs necessary for VA financing to be completed before closing, while protecting the agreed upon purchase price?

My goal isn't necessarily to avoid paying contractors altogether. I'm mainly trying to avoid paying contractor labor and markup on work that I'm capable of doing myself, while still structuring the purchase in a way that complies with the lender and VA requirements.

Has anyone dealt with a similar situation using a VA loan or VA renovation loan? I'd especially appreciate hearing how you structured the purchase and whether you were able to perform any of the renovation work yourself.

Thanks in advance for any insight.