For years, the Department of Veteran Administration (VA) has offered veterans and their families a home loan program full of great benefits like no down payment requirement, no mortgage insurance required, and fewer limiting qualifications that can be found in other loan programs. For a home to qualify it must meet minimum property requirements. These requirements were put into place to protect the buyer from unexpected, and usually expensive, repairs. VA’s minimum property requirements centered around safety, sanitation, and structural stability; features such as mechanical systems (HVAC), a reliable potable water supply, and sewage disposal. Also, included in the requirements were roofs in good shape and no presence of lead paint.
If a home did not meet the minimum standards, the veteran would need to find means to make the home improvements prior to purchase or move onto a different property. The VA began noticing an increased demand for alteration and repair loans, due to the aging housing stock in the US. As a result, VA now offers a Renovation Mortgage that allows veterans and some family members to borrow money to cover the costs of renovating a home and bases the mortgage loan amount on the home’s improved value. This is like other renovation loan products that we have been offering but it is now extended to veterans, so they can use their earned benefit on properties that don’t meet the property minimum standards.
This renovation mortgage is available for home purchases or refinances, meaning it can be used to make improvements on your current home! If you would like more information about this loan, please visit our page about this latest offering: https://smcapproved.com/learn/va-renovation/