When it comes time to purchase or renovate a home, it can be tough to decide which kind of loan is going to be the best for you. Fortunately for the United States military veterans, there are special options for you that can help you purchase and renovate the home of your dreams. First Fidelis wants all military veterans in the Kansas City area to know just how beneficial these loans can be.
Benefits of VA Home Renovation Loans
Since real estate agents would typically keep veterans away from fixer-upper properties due to the strict VA appraisal requirements needed for a VA home loan, the VA home renovation loan allows veterans to purchase a home in a great neighborhood that might need a little updating and a few repairs. Without a VA home renovation loan, veterans would b
e required to look for a different place as a fixer-upper home would never get past the appraisal process. VA home renovation loans can be granted at the same time as a VA home loan, which is very convenient for some home buyers.
With the ability to pay off the loan in up to 30 years, recipients will have lower monthly payments without sacrificing on the home of their dreams. Plus, since the V
A home renovation loan can be rolled into the mortgage, you only have one payment each month, unlike when you get a mortgage and a supplemental loan. Shorter-term payment options are also available.
Up to 25 percent of your VA renovation loan can also be used to replace non-fixtures in your home such as your hot water tank or refrigerator, as long as they are included in the renovations that you planned when getting the loan.
Other benefits include the possibility of zero down payment and lower closing costs. Mortgage rates may also be lower than average with a VA home renovation loan.
When you get a VA home renovation loan, you can do the following:
- Keep the loan funds in the bank
- Buy the home you love and include renovations
- Get a good deal on the home you are buying
- Perform needed repairs or wanted updates
- Potentially benefit from not having a down payment
Guidelines for VA Home Renovation Loans
Like all loans, VA home renovation loans have guidelines that must be met. Many of these guidelines are similar to traditional VA home loan requirements. Here are some of the primary guidelines:
- Must be a United States military veteran
- Must be purchasing a primary residence
- 100% Loan to Value using “as completed value”
- Minimum credit score of 640
- Up to approximately $29,500 in renovations
- Can be used for minor and non-structural repairs
- Accessibility upgrades are allowed
- 1-2 unit properties
- Purchase and refinance both eligible
- Cosmetic repairs are allowed
- Consultant not required
In fairness, most realtors never bring up VA home renovation loans, because there aren’t many lenders out there that offer them. Fortunately for veterans in the Kansas City area, First Fidelis offers VA renovation loans
If you are looking for a VA home renovation loan in the Kansas City Metro Area, look no further than First Fidelis. Contact us today at 913-205-9978 to get the process started so that you can get a new home right away.