VA Home Improvement Loans: Guidelines and Renovation Loan Options

VA home improvement loans can be cheaper than other options. Fixer-uppers for veterans are a great way to renovate or update a home.

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VA loans are special home buying loans designed to help veterans and current servicemembers purchase real estate.

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Typically, VA mortgage interest rates are lower, and the loans come with low or no down payment requirements, and no requirement to purchase private mortgage insurance.

The VA also offers loans specifically for home improvement or renovation. In this guide, we’ll tell you everything you need to know about finding the right VA loan for home improvement.

What is a VA Home Improvement Loan, and How Does it Work? The VA does not administer the loan itself. A VA home improvement loan is designed for making repairs, rather than just buying a home.

 You can also apply for a VA home improvement loan when refinancing your mortgage if your home needs renovation.

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VA Renewal Loan Guidelines A VA home improvement loan comes with certain guidelines. You can't use it to change anything about your home.

The list includes: Roof and floor repairs. Electrical repair or replacement. HVAC repair or replacement. Lead paint treatment. foundation repair. Improving energy efficiency.

You can’t use it as a loan for cosmetic landscaping to build aninfinity pool or to add marblecolumns to your hom for example But you can use it to bring your homes features in line with your neighbors

If you’re eligible, you’ll need to apply for a Certificate of Eligibility (COE) through the VA or your VA lender. The forms and requirements for getting a COE vary with your current military status.

You can apply for a COE online, through the mail, or directly with some lenders. Once you have a COE, you can apply with a private VA lender.