VA Renovation Loans
If you are purchasing an existing home and find that it needs some improvements or improvements are needed to pass a VA appraisal, we can allow for a VA purchase loan with improvements combined with the initial closing. This allows you to do the entire loan at once and there would be no need for you to take out a second loan after you purchase.
VA Renovation Requirements:
- Purchase Only or Cash-Out Refinance
- Minimum Credit Score: 580
- Bid amount cannot exceed $50,000 or up to 10% of the loan amount
- The loan amount can be up to 100% of the appraised value (appraisal is based on proposed improvements made)
- owner-occupied
- 1-4 Unit, existing property
- Minor Remodeling and NON-STRUCTRUAL Repairs
- “Do it Yourself” is not allowed
- Contractor must be licensed per local jurisdiction, carry $1M liability insurance and is VA Registered (We can help your contractor with this)
- Loan term is 15 or 30 year
- There is a 90 day maximum renovation period
- Up to 3 draws are allowed
Contractor Required Documents Checklist
- Notice to Contractor (provided by us for completion)
- Contractor Profile (provided by us for completion)
- W-9
- General Contractor Attestation (provided by us for completion)
- Homeowner-Contractor Agreement (provided by us for completion)
- Permit Certification (provided by us for completion)
- Draw Schedule (provided by us for completion)
- Worker’s Comp Disclosure (provided by us for completion)
Signed Proposal/Bid for work to be done
- Borrower Name & Subject property address must be listed on the Bid
- Please note on Bid if there are any Permits required for the work being done and Include the price of the permit on the bid
- The total price should be all inclusive of taxes (if applicable)
- Detailed description of work as specific as possible on each item of work
- Contractor and Borrower to sign and date
Contractor Supporting Docs
- Current Unexpired Contractor License(s)
- VA Builder ID Number (let us know if you need this)
- Current unexpired Contractor Liability Insurance Policy
- Submit all Plans, Specs, and Drawings (if applicable)
