VA Renovation loan Program
The VA Renovation Loan Program was designed and created to assist the Men and Women who serve or have served our Country. I think we can all agree that Veterans deserve every single VA benefit that is offered and much more for the sacrifice they make for our Country so that we may the Freedom that we were all meant to have.
The VA loan is one of the best mortgage products on the market. It allows, in most cases, Zero down payment, low rates and flexible mortgage terms. Even with all the amazing benefits the VA loan offers there was still something missing. In my opinion the missing piece to this amazing product was a Renovation Option. Well, banks finally figured it out and rolled out the VA Renovation loan Program!
VA Renovation Loan Requirements
The VA rehab loan allows veterans to do repairs and upgrades to their home or a home they would like to purchase. The VA Renovation Program allows for renovation costs to be included in the loan amount for a home you want to purchase or for any repairs or upgrades to a property you already own up to a $35,000.
Let’s discuss what can be included in repairs and upgrades. All upgrades may not exceed $35,000 but just imagine what you can do! Remodel kitchens, bathrooms, new flooring, interior and exterior paint, accessibility upgrades such as hand rails, ramps, etc. Upgrade heating and AC, new electrical, plumbing and much more. Just imagine the possibilities!! I don’t know about you but when I see all the possibilities the VA Renovation Program offers my head starts spinning a little. So, I called some contractors and got some averages for the most common upgrades and repairs, see below.
Guest Bathroom Remodel including new vanity, flooring, fixtures and paint- $2,500-$3,000
Master Bathroom Remodel including new vanity, flooring, fixtures and paint- $3,500-$4,000
Kitchen Remodel including counters, flooring, paint, backsplash, fixtures and cabinets- $12,000-$20,000
Interior Paint $4,000-$5,000
Exterior Paint $8,000-$12,000
As you can see these things add up but imagine if you could put your equity to work for you and not have to come up with this money out of pocket? What could you do around your house?
The VA Renovation Program as it pertains to the Purchase of a new home offers tons of options for potential home buyers. Some of you are in the market and some of you have already purchased homes but everyone can relate to the excitement and anxiety that’s involved with finding the perfect house. Location, location, location, right? But what if the perfect location isn’t the perfect house for you? I mean, it’s the best school district, friends and family are close, only 10 minutes from work and your favorite restaurant is less than 5 minutes away, perfect, right? But the kitchen is outdated, bathrooms are from the 80’s and the shag carpet is from the 70’s. What do you do? You know it’s going to cost around $20,000 to bring it into the 21st Century but who has that kind of money just laying around? Most people walk away from the perfect location, the perfect neighborhood and the short drive to work because they don’t have the ability to do the repairs on their own. You do NOT have to settle!! This is when we utilize the VA Renovation Program!! This program allows you to make all of the repairs you want to make without having to come out of pocket and spend your life savings!
For those of you who already own your home I’m sure you’ve noticed that the homes for sale currently on the market have increased in price over the last 12-18 months. Interestingly enough this is great news for you the homeowner! It means your property value should be increasing which increases your equity position. With the VA Renovation loan, you can put that equity to work! Upgrade your Kitchen, bathrooms, flooring, paint, or finish your basement. If you are sitting at home right now reading this just look around, see that spot on the floor where little Billy spilled juice? Or, the hardwood floors that man’s best friend has scratched up, or, my personal favorite, carpet in the bathroom! If you have carpet in your bathroom let’s get it out of there as soon as possible! All joking aside we all have things we would like to do with our homes and now the VA has opened the doors so that Veterans like you can do it.