Owning your own home is a big part of the American Dream, but there’s a difference between simply owning a house and really making it a home, and for veterans who are looking for solutions to help them do the former while doing the latter, VA renovation loans may be the best in Kansas City. While many veterans turn to traditional mortgages or FHA or USDA loans in Kansas City when looking to buy a new house, VA renovation loans have the advantage of allowing you to roll the money to renovate or fix up your home into the loan that you use to buy or refinance it. That means VA renovation loans allow you to remodel as part of a purchase, or sometime down the road, without having to dip into your savings or run up credit card bills in order to get the house fixed up the way you want it.
Whether you’re buying a new-to-you home that requires some fixer-upper repairs or refinancing with an eye toward renovation, a VA renovation loan gives you the flexibility to make needed repairs or upgrades as part of your home purchase or refinance. This also gives qualifying veterans a wider range of options when it comes to homes to choose from. A home that may have otherwise been out of the running because it needed immediate repairs may suddenly be within the realm of possibility with the help of a VA renovation loan. Or, if you’re looking to remodel your current house, a VA renovation loan may be a great way to take advantage of lower interest rates in order to fund planned repairs and renovations.
Convenience and low interest rates aren’t the only benefits that come with VA renovation loans for qualifying veterans. They offer options for zero down payment and lower closing costs, with 100% financing available to those who qualify. Like many other traditional mortgages and USDA loans in Kansas City, they can be financed for a term of 30 years, and are available on all sorts of properties, including single-family and multi-unit homes, condos, and even foreclosures, so long as the property in question is owned, occupied, or purchased by a qualifying veteran.
Along with the cost of your home purchase or refinance, you can get up to $35,000 for property improvements including needed repairs, upgrades, and remodels. There are, however, a few catches. Any work financed by a VA renovation loan must be performed by a licensed contractor, which means that you can’t do the work yourself. The contractor will be paid directly from the loan, and any work has to begin within 30 days of closing. There are also some types of work that aren’t covered by VA renovation loans, including new construction—such as adding on a new room or a new wing—and landscaping projects.
Aside from those caveats, however, there’s a lot that you can accomplish with your VA renovation loan and, in fact, you can even use up to 25% of it for things like appliances, including hot water heaters, HVAC units, and more. When you take out a VA renovation loan, your lender will discuss with you what your repair or renovation plans are and help you understand what options are available to you.
With that in mind, you’ll want to go with a lender you can trust. Someone who knows VA renovation loans inside and out, and who has a reputation as one of the best in Kansas City. If you’d like to learn more about what VA renovation loans can do for you or see if you qualify, contact First Fidelis today!