In addition to a traditional VA mortgage to purchase a home, the United States Department of Veterans Affairs (VA) also offers VA renovation loans. Whether you are buying a home that needs renovations or already own one in need of repairs, a VA renovation loan from PrimeLending offers you all the savings of a VA loan with the convenience of one application, one closing and one monthly payment.

Can you use a VA loan for renovations?

As part of the VA’s home loan program, qualified borrowers can use a VA loan to make renovations that improve the safety and/or livability of the home. Some of these upgrades or repairs include, but aren’t limited to, roofing, floors, foundations, and electrical/HVAC/plumbing systems.

What is a VA renovation loan?

A VA renovation loan is a mortgage option that helps Veterans and active duty military members finance renovations made to a home; either a home you already own or a home you plan to purchase and improve.

Benefits of a VA reno loan include:

  • No down payment and no PMI required1
  • No lender fees2
  • Finance renovations for up to four units
  • No private mortgage insurance
  • Loan amounts up to $1 million

How does a VA renovation loan work?

A VA renovation loan is very similar to a traditional VA home loan. However, the main difference is that a VA reno or VA rehab loan rolls the renovation costs into the financing amount of the loan. That means you would only have one closing day and one monthly payment.

You can use a VA renovation loan to make your current home more accessible or add more space. You could also utilize a VA reno loan to purchase and repair a fixer upper.

Who qualifies for a VA renovation loan?

Applicants that are considered to be “eligible” for a VA renovation loan are active-duty military members, those that have received a discharge other than dishonorable from an eligible branch of service, and qualified spouses.

Eligibility for a VA renovation loan begins by obtaining a Certificate of Eligibility (COE). A COE proves to a lender that the borrower meets the minimum service requirements to be eligible which are 90 total days during wartime or 181 continuous days during peacetime. National Guard and Reserves members typically need to meet the 6 years of service requirement.

Qualifying spouses of a veteran include an un-remarried spouse of a veteran dying in service or from a service-connected disability as well the spouse of a service member missing in action or prisoner of war. A surviving spouse who remarries on or after age 57 (and on or after 12/16/2003) and surviving spouses of certain totally disabled veterans whose disability may not have been the cause of death may also qualify for a VA renovation loan.

Additional information about COE eligibility and qualified borrowers, visit the eligibility chart on our VA purchase loans page.

How to apply for a VA renovation loan

In addition to getting a COE, you will need to follow a few other steps to get a VA renovation loan. With our digital mortgage application, you can experience a simplified application process. Plus, you can securely connect your financial information and track your process from your smartphone, tablet, or computer.

As part of your VA renovation loan application, our team will coordinate the appraisal, inspection and title search of the property. It will then be sent to the underwriting team for review which gives you time to work through any remaining questions you may have with your loan officer. Finally, if your VA reno application is approved, you can review and sign your closing documents.

Visit our VA home loans page for more information about VA home loan eligibility requirements, or talk to your local loan expert about your options. With PrimeLending, you’ll have a proven industry leader with more than 35 years of VA home loan expertise by your side.