If you’ve served your country, you may be able to qualify for VA loans. VA loans give Veterans and military personnel access to homeownership opportunities. With these loans, you don’t have to pay a down payment or mortgage insurance. Additionally, VA loans typically have better interest rates, which can help with your monthly payments.
VA loans are not only available for home purchases, but you can also apply for a VA loan for home improvement financing. Let’s take a look at how this works.
What Type of Home Improvement Financing Can You Get as a Veteran?
The federal government provides Veterans the advantage of securing VA loans to buy or renovate homes. Here are a few options for VA home improvement financing.
Apply for a VA Cash-Out Refinance
If you obtain a VA cash-out refinance, you can use the funds for any purpose. This includes repairs and renovations for your home. However, you can only qualify for this option if your outstanding mortgage amount is less than the value of your home.
VA Renovation Loans for New Home Purchases
If you want to buy a home that needs a little TLC, then a VA renovation loan might be a good option for you. If you take out a VA renovation loan, you can obtain financing for both the purchase price and the expected repairs. The renovation costs are included in your mortgage payment.
If you go this route, you’re not limited to buying a home that meets the VA’s minimum property requirements. In other words, you can purchase a fixer-upper. Then, you can use the money to bring the home up to the VA’s standards. This is a great work-around that can give VA borrowers access to a wider selection of homes on the market.
However, it’s important to note that these loans also have restrictions. With a VA renovation loan, you cannot borrow more than what the value of the home is expected to be after the repairs. Additionally, lenders may charge a construction fee.
VA Renovation Loans for Existing Homes
You can also apply for a VA renovation loan if you already own a property that requires repairs. Essentially, this option allows you to refinance your existing loan to pay for the cost of renovations.
Home Improvements Are an Investment
It’s important to keep in mind that home improvements are an investment. The amount of money you put into upgrading and renovating your house can increase its value. Additionally, renovated homes sell much faster than older homes or homes that require repairs. Therefore, there are many good reasons to upgrade and improve your home. If you’re a military member or Veteran and are thinking about buying a fixer upper or renovating your existing home, there are many financing options available to you. Contact us today to begin exploring your options!
Learn More About VA Loans
Interested in learning more about VA home improvement financing loans? Contact Mortgage Solutions Financial today. Our experts can guide you through the process and help you find the best option for your needs.