Profile picture for shamrock211

Va home improvement loans?

We're approved for a VA loan, but the house we're interested in needs work. We'd like to combine our purchase loan with a home improvement loan. These VA home improvement loans exist (per the VA), but we can't find a lender who handles them. USAA, Pen Fed and Navy Fed don't. Any suggestions?
  • July 21 2011 - Reston
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Answers (6)

Profile picture for emmajacob
Did you find a lender to do it??



_____________
Home Mortgage
  • November 30 2011
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Profile picture for BillOFgoods
Good luck finding an investor to do it, I couldn't on an IRRRL.
  • November 29 2011
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The VA home improvement loan may exist, but I've never heard of anyone doing it.  If you are looking in California Cal-Vet might be an option, but their rate is not that great.  If the repairs fall into the Energy Improvement category then find a lender that does Energy Efficient Mortgage loans.

If the work is more extensive you probably are going to have to put down 3.5% (of the sales price + the work to be done) and go with an FHA 203(k.)  I know the FHA mortgage insurance is high, but this really is the best option to buy a home that needs work that the seller won't do.

  • November 22 2011
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Can you qualify for a VHDA loan (zero $ down, but must meet certain requirements) or a FHA loan with 3.5%down?

With FHA loan, you could take 203(k) rehabilitation loan which is designed to repair the home to a safe, livable, move-in condition.
  • November 02 2011
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Profile picture for AlmaKee
Hi Shamrock,

Did you find a lender to do a fixer upper mortgage?  I'm searching for one for a client right now...  let me know if you found a lender... and I'll let you know if I find one.

All the best,
Alma
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  • October 25 2011
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everything I have seen separated the two into separate transactions.  I have seen VA purchase loans, and VA home improvement loans (note they are generally geared towards energy efficiency, not typical kitchen and bath remodels).  FHA offers something with an escrow hold back if the repairs are needed before you own the home... you may check into that.
  • July 21 2011
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