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VA Home Improvement Loan - Requirements and Limits in 2024

Reviewed by: David Naimey

Approved by: Chad Turner

VA home improvement loans can help borrowers buy a fixer-upper or a home that requires renovation and roll the cost of the renovation, alteration, and repair into the original mortgage. VA home improvement loans can also be used as refinance loans.

If you’re a veteran or serving member of the military considering home improvements, you’re in the right place. Are you looking to renovate, repair, or upgrade your home? A VA home improvement loan, also known as a VA rehab loan, offers valuable loan benefits tailored to veterans and their families.

VA home improvement loans come with the same favorable and helpful terms that VA loans extend, such as low interest rates, no private mortgage insurance, no minimal down payment, manageable monthly payment, and low closing costs that include a VA funding fee that you can roll into the mortgage. The VA home improvement loan program is geared towards veterans and aims at helping them buy a property and repair it to acceptable and safe standards. A VA home loan requires borrowers to include the cost of the contractors who will undertake the renovation project.

What Is a VA Home Improvement Loan?

VA home improvement loans are designed to support veterans and eligible military service members in making improvements to their homes. These loans offer a lower interest rate, flexible terms and repayment options, and access to funds for a wide range of home improvement projects. Repair and renovation costs are rolled into the original mortgage and are paid in monthly payments. 

With VA home loans, veterans can borrow money to finance renovations, repairs, and upgrades to create a safer, more comfortable living environment for themselves and their families.

What Repairs or Improvements Does a VA Home Improvement Loan Cover?

VA home improvement loans can be used to fund a variety of home repairs and renovations for a livable, safe, and energy-efficient home. Repairs are limited to functional works, and should not be solely aesthetic.

Roof repair or replacement

If your rooftop is damaged or nearing the end of its lifespan, a VA home improvement loan can help cover the costs of repairs or replacement.

HVAC system upgrades

A VA home improvement loan can help cover the costs of installing a new HVAC system or making repairs to your existing system.

Kitchen and bathroom renovations

You can be using the VA home improvement to update fixtures, install new appliances, and remodel your kitchen and bathroom.

Accessibility modifications

If you or a family member has mobility challenges or disabilities, a VA home improvement loan can finance specially adapted housing modifications. This may include installing ramps, widening doorways, or adding grab bars and other safety features.

Energy efficiency upgrades

With a VA home improvement loan, you can finance projects such as installing energy-efficient windows and doors, upgrading insulation, or adding solar panels.

Structural repairs

A VA home improvement loan can help cover the costs of structural repairs so that your home remains safe and stable.

VA Renovation Loan Requirements and Eligibility

The eligibility criteria and requirements for a VA home improvement loan are similar to a VA loan. 

Military status

You must be a native American veteran, an active duty service member (with at least 90 continuous days of active service), or a member of the National Guard to be eligible for a VA home improvement loan. You are also eligible if you are the spouse of a veteran who is missing in action or is a prisoner of war, or the surviving spouse of a soldier who died in service or from a service-connected disability. In all cases, you must get a Certificate of Eligibility (COE) from the Department of Veterans Affairs (VA) before you sign the VA loan application.

Minimum credit score

While there is no specific minimum credit score requirement set by the VA, lenders typically have their own credit score requirements for VA loans. A higher credit score may improve your chances of qualifying for a VA home improvement loan and securing favorable terms.

Income and debt-to-income ratio

Lenders will assess your income and debt-to-income ratio to determine your ability to repay the loan. While there are no strict income requirements for VA loans, a lender will typically look for stable income and a manageable debt load.

Property eligibility

The property undergoing renovation must be your primary residence and meet certain VA requirements.

Scope of renovations

The renovations or improvements being financed must be deemed “permanent” and add value to the real estate property. Cosmetic upgrades, such as painting or landscaping, may not be eligible unless they are part of a larger renovation project.

VA-approved lender

You must work with a VA-approved lender like Society Mortgage to apply for and obtain a VA home improvement loan. At Society Mortgage, we can help you determine your eligibility for a VA loan and guide you through the loan process to help you with everything you need to get a VA home loan. Contact us to learn more about your VA loan options.

Quotes from contractors

You must supply quotes from contractors that will state the cost of repairs and construction works. Your contractors and builders must be registered with the VA and carry a valid VA builder identification number.

Maximum repair limits

Depending on the type of VA home improvement loan you apply for, there are limits to the renovation expenses.

Types of VA Home Improvement Loans

VA home renovation loan

A VA home renovation loan is meant to help veterans purchase a home that is not up to standards and make the required repairs and renovations to make it livable. The cost of the repairs cannot exceed $50,000.

VA supplemental loan

A VA supplemental loan is for veterans who have financed their home with a VA mortgage and the supplemental loan is used for necessary repairs and renovation.

VA energy efficient loan

A VA energy-efficient loan provides funds to make energy-efficient improvements to the house, such as installing solar panels or upgrading insulation.

Contact Society Mortgage

Are you considering a VA home improvement loan? Talk to a mortgage Loan Officer today. We’ll help you find out if you’re eligible and help you with your mortgage application!

Frequently Asked Questions

Yes, VA renovation loans can be used for buying a fixer-upper property and to cover the cost of renovations. These loans allow you to roll the cost of repairs and improvements into your mortgage, providing a convenient financing option for buying a home and renovating it.

VA renovation loans can be used to finance a wide range of renovations and improvements that enhance the basic livability, safety, and energy efficiency of the home. However, cosmetic upgrades that do not add value to the property, such as luxury items or purely aesthetic changes, may not be eligible for financing.

Yes, VA renovation loans typically require an appraisal to determine the current home value and assess the property’s condition. The appraiser will ensure that the loan amount is appropriate for the property’s value and that the renovations will improve the property’s overall worth.

Yes, VA renovation loans can be used to refinance your existing home loan, whether a VA home loan or a conventional mortgage, to finance the purchase and improvements of a home. Additionally, you have the option of utilizing a VA cash-out refinance loan to tap into your home equity line for funding. Contact Society Mortgage for more information on the VA home loan program.


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