Home Improvements VA Loan  Options for

A VA renovation loan rolls the cost of repairs into a VA mortgage or VA cash-out refinance.

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VA loans make homeownership possible for thousands of veterans and military service members every year.

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The loans have no down payment or mortgage insurance and often have lower mortgage rates than other home loans.

Besides those well-known benefits, you can use a VA loan to buy a fixer-upper or renovate your current home. Here are four VA home improvement loan options.

1. VA cash-out refinance

You may be able to tap into home equity with a VA cash-out refinance if you owe less on your mortgage than your home is worth You can use the cash-out money for any purpose including home improvements

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2. VA renovation loan

With this option, you're not limited to homes that already meet the VA's minimum property requirements. You can use the repair money to bring the home up to the VA's standards

If you already have a home that needs TLC, a VA renovation loan may be worth considering. Be aware that lenders may charge a construction fee of up to 1% or 2% of the VA renewal loan amount.

3. VA loan for energy efficiency

You can roll the cost of energy efficiency improvements into a VA purchase or refinance loan Acceptable improvements include things like thermal windows insulation and solar heating or cooling systems

More than $3,000 up to $6,000: The lender will review your plans to make sure the increase in monthly mortgage payments won’t exceed the estimated reduction in monthly utility bills.