VA Renovation
Loans in Florida
If you are purchasing an existing home and find that it needs some improvements or improvements are needed to pass a VA appraisal, we can allow for a VA purchase loan with improvements combined with the initial closing. Veterans can purchase or refinance a home while financing renovations into a single VA loan, eliminating the need to obtain a second loan after closing.
Requirements
VA Renovation Requirements:
- Purchase Only or Cash-Out Refinance
- Minimum Credit Score: 600
- Updated Limited Renovation guidelines may allow up to $75,000 in eligible repairs
- The loan amount can be up to 100% of the appraised value (appraisal is based on proposed improvements made)
- Owner-occupied primary residence only
- 1-4 Unit, existing property
- Includes both Limited (non-structural cosmetic updates) and Standard Renovation options for eligible structural repairs, major remodeling, and more extensive home improvements.
- Standard Renovation loans have no maximum repair amount.
- “Do it Yourself” is not allowed
- Contractor must be licensed per local jurisdiction, carry a minimum of $500,000 liability insurance and is VA Registered (We can help your contractor with this)
- Loan term is 15 or 30 year
- The renovation period is up to 180 days.
- Up to 5 draws are allowed for single-contractor projects.
- Eligible property types: 1-4 units, VA approved condos, modular homes.
- Ineligible property types: manufactured homes, co-ops, and new construction.
What Can You Renovate with a VA Renovation Loan?
Eligible Repairs
- Roof repairs and replacement.
- HVAC, plumbing, and electrical upgrades.
- Kitchen and bathroom remodels.
- Windows and doors.
- Accessibility improvements.
- Weatherization and insulation.
- Decks, patios, and porches.
- Pool repairs.
- Exterior siding and painting.
Ineligible Repairs
- Luxury improvements.
- DIY or self-help repairs.
- Tear downs or razing properties.
- New construction under Limited Renovation.
- Projects that make the home uninhabitable for more than 15 days under Limited Renovation.
Checklist
Contractor Required Documents Checklist
- Notice to Contractor (provided by us for completion)
- Contractor Profile (provided by us for completion)
- W-9
- General Contractor Attestation (provided by us for completion)
- Homeowner-Contractor Agreement (provided by us for completion)
- Permit Certification (provided by us for completion)
- Draw Schedule (provided by us for completion)
- Worker’s Comp Disclosure (provided by us for completion). Contractors must carry Workers' Compensation Insurance or provide a valid state exemption certificate.
Approved Proposal
Signed Proposal/Bid for work to be done
- Borrower Name & Subject property address must be listed on the Bid
- Please note on Bid if there are any Permits required for the work being done and Include the price of the permit in the bid. Permits must be pulled before any draw is released
- The total price should be all inclusive of taxes (if applicable)
- Detailed description of work as specific as possible on each item of work
- Contractor and Borrower to sign and date
- Contractor bids must be finalized before appraisal ordering
Contractor Documents
Contractor Supporting Docs
- Current Unexpired Contractor License(s)
- VA Builder ID Number (let us know if you need this)
- Current unexpired Contractor Liability Insurance Policy
- Submit all Plans, Specs, and Drawings (if applicable)
Specialist
VA Loan Specialist Shirley Mueller!
Working as a loan originator since 2003, Shirley has helped over 2000 Veterans with VA Home Loans. She has helped Veterans in almost every situation, including deployed personnel returning home or those with PCS orders. Shirley also helps disabled Veterans who…