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Posted over 5 years ago

Guide To The VA Renovation Loan

VA Renovation Loan

Is available on SFR, PUDs and VA approved Condo's. You can make repairs or improvements up to 35% of the "As Completed" value of the property. The improvements must be permanently affixed to the property, and add value.

180 day limit to completing the repairs.

10% Contingency reserve is required. (15% required if structural repairs or no utilites on)

Allowable Repairs: 

  • Maximum repairs 35% of the after complete value.
  • Roof: repair or replacement (covering, underlayment)
  • Gutters/downspouts: install/repair/replace
  • Insulation: ceilings/walls/asbestos removal
  • Weatherization items/repairs/improvements
  • Siding/windows/doors
  • Detached or Attached Garage - new build or repairs
  • Paint: interior/exterior/lead paint abatement )by certified LBP contractor)
  • Kitchen: all appliances/cabinets/ total
  • Electrical: repair/replace/recondition all
  • Plumbing: repair/replace/recondition all
  • Repair/Replace HVAC or other systems
  • Repairing or removing an in-ground swimming pool
  • Landscaping
  • Installing or repairing fences, walkways and driveways
  • Mold remediation or mold removal
  • Handicap accessibility improvements
  • Flooring/subflooring/tile/carpet/wood
  • Termite treatment/damage repair
  • Repairing or replacement of well and septic- *See appraisal section of the guidelines for specific requirements
  • Foundation Repair
  • Room Additions
  • Finish Basements and attics
  • Removal of outbuildings or old manufactured home
  • Repairs That are Not Allowed:

    • Repairs performed by the borrower
    • Swimming Pool Installations (Repairs allowed.) No luxury items such as outdoor kitchens/BBQs/Saunas, etc.
    • Improvements that do not conform to the surrounding neighborhood
    • Results in work not starting within 30 days after loan closing.
    • Television antenna and satellite dishes.
    • Improvements for Mixed Property Use
    • SFR conversion to a 2 unit
    • Relocated Property
    • Projects that will take more than 180 days to complete


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