Renovation financing and restrictions

[Marianne Lumsden]

Is anyone having trouble finding conventional funding for renovation? My conventional lender told me that they can only consider me for a renovation loan if I will owner-occupy the property. She said that the Department of Veterans Affairs (VA) stopped offering reno loans. She did not know how long this restriction will be in place.

I am going to a portfolio lender next to see if they can work with me. The portfolio lender will consider making the reno loan only if they have the first position also. That is, they'll make the reno loan if they also make the home loan.