VA Home Loan + Prospective DADU

[Laura Pattawi]

Hello BP members!

In pursuit of more space more my growing family, wealth building, and an additional source of income, I am pursuing an owner-occupied property with the potential of STR in the downtown Nashville area.

Since I am a veteran I have access to a VA loan (Currently have approval for up to $545K for a primary single-family residence). There is a property that I'm eying down the street from me well below the lending limit with a detached garage that I can envision converting into a DADU, pending city approval. I don't have enough equity in my current home for a HELOC and I read that luxury improvements are not eligible for VA home improvement loans. Any recommendations on how to finance? Any advice on pursuing construction loans, specifically? After reading some other posts I anticipating needed ~$100K for the DADU addition (this, of course, is without getting any formal quotes from GCs).

Any help and advice for this home improvement newbie is welcome! Thank you!