Home Buying in 78221>Question Details

Michelle Joh…, Home Buyer in Fort Sam Houston, TX

I am active duty military. Can I use VA loan to renovate and buy an older home?

Asked by Michelle Johnson, Fort Sam Houston, TX Sat Jul 28, 2012

1034 west hutchison, 78221

Help the community by answering this question:


Many veterans who use the VA Home Loan Guarantee Program to purchase or refinance their homes want to make home improvements. Even if you are buying a pre-existing home, there may be certain improvements you will want to make right away to save on utility bills or make the house more energy-efficient.
When you purchase or refinance a home through the VA Home Loan Guarantee Program the VA is willing to finance the cost of your energy-efficient home improvements into your loan, so that you will have money available to make your home improvements now.

The VA will allow you to finance money for energy-efficient home improvements into your new mortgage loan or refinance mortgage loan as long as the money is used to pay for one of the following home improvements:

* Heat pumps
* Thermal or storm doors and windows
* Energy-efficient furnace purchase or efficiency modifications to your existing furnace, this means that you can purchase a new furnace or convert the one you already have to make it more energy-efficient.
* Water heater insulation
* Clock thermostats
* Solar cooling systems
* Solar heating systems
* Insulation in the home, including insulation in the floors, attic, walls, and doors
* Any other energy-efficient home improvements that you and your lender agree will lower your utility costs and can be included in the loan

The VA offers veterans the choice to finance their energy-efficient home improvements in order to lower their utilities, and, ultimately save them a lot of money. You are allowed to borrow up to $6,000 without a separate appraisal. There are some important facts to keep in mind about the energy-efficient money you can add to your home loan, including:

* If you plan to borrow any amount up to $3,000, the only documentation you need to show your mortgage lender is the receipts from the improvements. Keep in mind that you cannot include your own labor into these figures.

* If you plan to borrow over $3,000, you will have to show your mortgage company that the money you will save in utility bills will offset the additional cost you will be adding to your monthly mortgage payment.

* To determine if you will save enough money on your utility bills to finance the improvements you want, contact your local utility companies; they can give you a professional opinion about how much you will save. Your lender should accept that as proof of your estimated savings.

* If you plan to make the home improvements after you close the loan but are unsure exactly when, your lender will want to set up an escrow account so that you can spend only the amount of money on the improvements that you specified to them.

Be sure to contact your lender to ensure that you qualify for whichever energy-efficient home improvements you plan to make, so they may be financed into your loan. You may be able to make improvements that can save you money now, instead of later.
Reference Link:- http://vastreamlinemortgage.net/loan-process/
3 votes Thank Flag Link Tue May 5, 2015
Lenders’ weak stomach for extending credit doesn’t have to sour your upgrade dreams. The old but new again FHA 203(k) loan rolls remodeling and mortgage costs together, whether you’re buying or refinancing an existing home loan to pay for upgrades.

> First, some 203(k) basics:
* 15- or 30-year term option
* ARM or fixed-rate option
* 3.5% down payment for loans of $625,500 or under and 5% for loans above $625,500; other FHA loan qualifications apply
* Interest rate a tad higher than market
* Higher fees compared with equity or other FHA loans, for such things as title checks, architectural plan reviews, appraisal, and FHA inspections
* No balloon payment
* Loan amount = projected value post-rehab, including the cost of the work

Home buyers who buy an older home or foreclosure are often frustrated by the difficulty of financing necessary repairs and renovations. However, a Federal Housing Administration (FHA) home loan program called 203(k) rehabilitation loan may offer assistance.

A 203(k) rehabilitation loan dealing with the mortgage insurance program allows borrowers to wrap the cost of repairs and improvements into their home financing. This loan option is ideal for borrowers who are interested in buying a property that needs repairs or would benefit from remodeling. It’s also ideal for homeowners who need funds to rehabilitate/remodel their property.

> http://valoanguidelines.org/military-service-requirements/
1 vote Thank Flag Link Fri May 15, 2015
My company, imortgage, just came out with what we believe is the only VA renovation loan program currently available. This is similar to the FHA 203K streamline renovation loan, but uses the VA guidelines. This lets a active duty or veteran get up to $35,000 for renovations using 100% of the home's value after the renovation.
1 vote Thank Flag Link Mon Sep 8, 2014

You should be able to obtain a VLB Veterans Home Improvement loan which can only be used for alterations, repairs and improvements that are eligible for financing under the Department of Housing & Urban Development (HUD) Federal Housing Administration (FHA) Title I Loan Program.

All work and/or construction must be in compliance with all applicable building codes and standards. The VHIP loan can be used to make alterations, repairs and improvements to, or in connection with, the veteran's existing primary residence if and only if the repairs will:
•substantially protect or improve the basic livability or energy efficiency of the property;
•correct damage resulting from a natural disaster;
•correct conditions that are hazardous to health or safety

You can contact a representative at 1.800.252.VETS (8387)

Chris Thorson
Century 21 United-Northside
Cell 210-595-0027
Office 210-979-6700
1 vote Thank Flag Link Sat Jul 28, 2012
Hello Michelle,
Thank you so much for your service. imortgage is the only company in the nation that offers a VA renovation loan. You can purchase or refinance a home and take out an additional $35,000 for home improvements/renovations. We have local offices in Texas that can assist you further.
All the best,
0 votes Thank Flag Link Mon Apr 11, 2016
There are options out there, when it comes to VA though there are a number of guild lines that you must follow and requirements that the home must meet to even be approved for a VA appraisal. I have helped many VA buyers out of Fort Sam and Randolph through the purchase of a home, most of the times they have found that it is just easier to find a home that suits their needs without doing major renovations. In the end, what they would have to spend to renovate on the home to bring it up to requirements would have equaled the cost of purchasing a home that is already done. If you wish, I am happy to discuss the various options that are available on a VA home loan.

Thank you,
Travis Reed
River Valley Real Estate - San Antonio
0 votes Thank Flag Link Mon Sep 8, 2014
FHA 203k, a mortgage loan where you can use to buy and remodel home. I suggest you talk to a professional who has experience in 203k.

Check if you qualify for a mortgage. Try http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sat Aug 24, 2013
Also... some VA foreclosures offer a VA Vendee Financing option... again... give me a call.. and I'll walk you through it. :)
0 votes Thank Flag Link Sun Jul 29, 2012
VA is a bit picky when it comes to property condition. To be honest... I have yet to get a "Fixer-Upper" home to actually close with a VA loan. VA Appraisers seem to have a mission in life right now to beat up homes and require all kinds of repairs... So if you are looking at a foreclosure that is selling the home "As-Is" you are fighting an uphill battle from day one.

You can get pretty close though... You can do an FHA-203K loan which is a renovation type loan. Its a bit too complicated to go over here on a Q&A Forum, but if you want to give me a call, I will walk you through it, and get you to the best 203K lender in the business... save you bunch of time, and most of all, a bunch of money.

It's not going to be zero down.. but the down payment wont be too huge to handle.. the old 3.5% of the sales price is about right... and I'll get the seller to pay your closing costs :)

Shoot me an e-mail, text message, or give me a call and I'll get you to the right lender, and shoot you a list of homes that fit exaclty what you are looking for. My services to you are free. :)

Jason C Campbell
Option One Real Estate
0 votes Thank Flag Link Sun Jul 29, 2012
It depends. Did you use all of your VA entitlement to purchase the home? Will you be able to handle the additional payments bugetwise? After you make the improvements, will the house appraise for a greater value thus giving you home equity? You will need to get an estimate(s) for the repairs and then talk to your lender.
Please let me know if you have any more questions. Kelly Spicer
0 votes Thank Flag Link Sun Jul 29, 2012

I'm a veteran also and thank you for your service. Ok, here's the deal - a VA loan is given only for the purchase price and you cannot roll repairs into the loan. There are renovation type loans for this. In terms of this home, it is as-is which may give you problems because VA loans are also designed to protect veterans by ensuring the home is habitable.

If the appraiser determines that repairs are needed to protect the veteran and ensure the home meets minimum VA requirements, this could be a problem since the home is part of a probate and being sold as-is.
0 votes Thank Flag Link Sat Jul 28, 2012
The best answer to your question will be given by a VA lender specialist. If you need one, please let me know to get in contact with the one I know who is an expert.
Good Luck
Jose Novelo
0 votes Thank Flag Link Sat Jul 28, 2012
Va loan's due have some restrictions Best contact a mortgage broker who can review the entire file determine what you can or can't do .

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer

Follow me on Facebook
0 votes Thank Flag Link Sat Jul 28, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer