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Can we get a Renovation Loan folded into our VA loan in Georgia?

We are looking at a house that we could purchase (approx $140k) with enough in our monthly budget to pay for a loan to do add some much desired renovations - approximately $4k (not for energy efficiency improvement) but for a kitchen renovation and the removal of a wall separating a small den and a small living room/dining area and new flooring. I am VA eligible and don't want to layout $6k for the other loan option at 3.5%. Are there any other options for loans while using the VA eligibility?
  • January 10 2014 - Smyrna
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Answers (9)

This is an old post, but if anyone is looking for a VA Renovation loan in Florida, iMortgage is an experienced provider of this product as well as FHA 203k and FNMA Homestyle Renovation. Homestyle is great because unlike VA and FHA, it is available for second homes and investment properties.

Tiffany.Bell@imortgage.com 
  • March 25
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If you are still looking at this, my company, [self-promotional spam removed by Zillow moderator, see our Good Neighbor Policy] just rolled out a VA renovation product that does not require the repairs to be for energy efficiency.  You can use it for a purchase or refinance up to 100% of the appraised value of the house after the repairs.

The dollar value is $5000 to $35,000 max and there cannot be any structural changes that require permits.

I am not licensed in Georgia, but we do have loan consultants in that state.

Hope this helps.

Todd Eldridge 
  • September 04 2014
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None of the renovation loan options (FHA 203k, FNMA Homestyle, etc.) will make any sense for the amount of renovations you are looking to do.

Renovation loans are considerably more expensive than standard purchase money loans and rarely make sense unless the amount of renovations comes up to at least $10k - $15k.

I'd recommend closing on the VA loan, and after you have closed, then getting a credit card to complete the renovations.
  • January 25 2014
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Your best bet is to stick with the VA loan. Even with an FHA 203K they usually will not allow structual changes such as the removal of a wall. I am in the same perdicament and I have ran the numbers. It would cost too much extra to do the 203k, get the changes made and then refinance into a VA loan. VA ALL THE WAY!
  • January 25 2014
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One of the responses probably gave the best option with a home equity or HELOC.  

As a Realtor® here is my personal take on the other options: 

203K - FHA -  As you stated, it would require 3.5% down, PLUS upfront fee and PERMANENT monthly mortgage insurance. 

Conventional Rehab (Not all lenders will offer this) - Some are as low as 5% down and would also require MI/PMI. As well as having a higher rate and requiring higher credit scores to qualify. 

The disagree with the option below saying to finance VA then refinance out.  One, unless you are except due to a disability, your VA Funding fee could cost you $4-6K (Wrapped into the loan) and is not refundable to my knowledge.  Once you use the loan, you have paid it.  Then you pay closing costs AGAIN just to refinance?  Doesn't really make sense to me... other than the lender is making more money. 

Best options:  Come up with a down payment, Pay Cash for the renovations or locate a equity line/HELOC.   

Good luck!!  

If you need a Realtor® in the area that is familiar with Cobb County and will help walk you thru your options, let me know. I have a convenient location off Hwy 41 and Spring. 

Cassandra

  • January 23 2014
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There are not any renovation loan options that come with a VA loan. If you would still like to seek a renovation loan option that you will have to go outside of the VA loans. One particular renovation loan to consider the FHA 203k. This type of loan covers the price of the home along with the costs of the renovations. This will most likely be your best bet for the renovation route. The best thing for you to do is to speak with a lender such as myself to see if you can get started on financing a new home. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!

  • January 10 2014
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Not on a VA loan, But you can do so on an FHA loan (FHA 203k).  The benefits of a VA loan greatly outweigh an FHA loan of any kind, so I'd stick to the VA--however, if you make improvements to the property which increases it's Appraised Value, you should be able to get a Second Mortgage (possibly a Home Equity Line of Credit -- HELOC) to reimburse your costs of the repairs/renovations.  I definitely would not go with the 203k loan for only $6,000 in repairs/renovations.  The rate is higher, and it would have Mortgage Insurance where the VA would not.
You may want to speak to a good Credit Union to inquire about their HELOCs before definitely going that way.

  • January 10 2014
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The only one that I am aware of is the FHA 203K loan option that my company has a lot of experience in. I do not belive the VA programs have them at least that I am aware of.

Keep in mind you can always refinance out of the program wihtin the first year as long as there is a benefit which woudl be dropping the MI .

Good luck!
  • January 10 2014
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Unfortunately, you cannot make those type of repairs/renovations with a VA loan. Your best bet is with an FHA 203K loan which does require the 3.5% down.
  • January 10 2014
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