The competitive nature of this Spring’s real estate market hopefully hasn’t left you discouraged. Available homes are being snatched up within a couple days with multiple offers driving the purchase price above asking in most cases. This is a great situation if you are selling real estate but if you are searching for a new home this can be very frustrating leaving you to feel discouraged. Well I have to tell you – Don’t Be!! VA Home Renovation Loans are here.
VA Home Renovation Loan Explained
It’s not a well advertised fact that a VA home loan can be used simultaneously purchase and improve a home. Here is an example directly from VA home loan policy: Contract sales price is $100,000 alterations and repairs are $75,000, contingency reserve of $7,500, inspection $250, permit $250, for a total acquisition cost of $183,000. Notice of Value (NOV) is $190,000. The lesser amount of $183,000 is to be used as the acquisition cost. Therefore, the entire acquisition cost of $183,000, plus the funding fee may be financed.
Yes this is directly from the VA home loan policy! Houses that you previously thought were not up to VA appraisal standards are now a possibility. This makes a house in a specific neighborhood or school district you desired a reality so keep your head up and make your home the perfect reflection of you.
The complete guidance, Department of Veterans Affairs
VA Lender’s Handbook, 26-7, Chapter 7, Topic 4 was updated with Circular 26-18-6 dated April 5, 2018.
Finding a Lender
Just because a lender does VA home loans doesn’t necessarily mean they have the ability to do a VA Home Renovation Loan. Fill out your contact information, answer a few questions for us here, and we will put you in contact with a VA Home Renovation Loan provider in your area.
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