Construction & Renovation Loan
VA Renovation
Buy the home that needs work, or improve the one you own, and finance the repairs inside your VA loan, with the VA benefits you earned.
- CoversThe home and the repairs in one loan
- Use it toPurchase or refinance
- Mortgage insuranceNo monthly premium
- PropertyPrimary residence
How It Works
Repairs built into a VA loan.
A VA renovation loan is a VA-guaranteed mortgage sized on what the home will be worth after the work. The repair money is held at closing and paid to the contractor as the work is completed.
- 01
We scope the work with you
You choose a licensed contractor who meets the lender's requirements and get a detailed bid for the repairs or improvements.
- 02
The home is appraised as finished
A VA appraiser values the home as it will be after the work, and the loan is sized from the price or payoff plus the cost of the project.
- 03
We find a lender that offers it
Only some lenders offer VA renovation loans, and their limits differ. We match your project with one that fits and follow the draws through completion.
Program Highlights
Why veterans choose VA renovation.
- Finances the home and the repairs in one VA loan
- Works for a purchase or a refinance
- Keeps VA benefits, including no monthly mortgage insurance
- Repair funds are held and released as the work is completed
- Can help a home meet the VA's minimum property requirements
- Available through select lenders, which we can find for you
Common Questions
What veterans ask about VA renovation loans.
It is a VA-guaranteed mortgage that includes the cost of repairs or improvements, so you can buy or refinance a home and fix it up with one loan and one payment. The loan is based on the home's value after the work is done.
Only some lenders offer them, and each sets its own limits on the size and type of work. As a broker, we know which of our wholesale lenders offer VA renovation loans and which one fits your project.
Typically repairs and improvements that add to the home's livability or value, such as roofs, flooring, kitchens, bathrooms, systems and accessibility changes. Lenders usually limit major structural work and luxury items. We will check your project against the lender's list before you commit.
Generally no. Lenders require licensed and insured contractors who meet their standards, and funds are released against completed work.
For eligible borrowers with full entitlement, VA renovation loans can be done with no down payment, as long as the total fits within the after-repair value and the lender's limits. A one-time VA funding fee may apply unless you are exempt.
Often that is exactly what it is for. If the appraiser flags repairs the home needs to meet VA standards, a renovation loan can include them, subject to the lender's limits on the scope of work.
General information only, not a commitment to lend. Loan programs, guidelines, interest rates and terms are subject to change without advance notice.
Related Programs
Price your VA renovation across our lender network.
Send us the home and the work you have in mind. We will find a lender that offers VA renovation and show you what it would look like.