THE VA RENOVATION LOAN

The Renovation Mortgage Process Revealed

GENERAL PROGRAM GUIDELINES

  • Newest Renovation Loan Program in the Market
  • Purchase & Refinance allowed
  • Maximum 100% LTV allowed
  • Allowable repairs limited to non structural mostly cosmetic (lender discretion)
  • Renovation Budget may be capped at $35k or up to 25% of After Improved Value based on Total Renovation Costs
  • No special Consultant/Inspector Required

  • Up to 1-4 units Properties allowed (lender discretion
    Renovations must be completed after closing within 3-4 months (lender discretion)
  • No Minimum Renovation Budget required (lender discretion)
  • Appraisal – May require After Improved Value only or both After Improved and As Is Value (lender discretion)
  • 2-3 Contractor Draw Payments allowed (lender discretion)
  • Minimum 10-20% contingency required for additional health and safety issues (lender discretion)

Writing the Purchase Contract

You and your Realtor should consult your lender as soon as possible when starting negotiations on a Property for Purchase. VA does require some slight nuances in how the Contract must be written on a VA Renovation loan and you will want to make sure you all have those details upfront so that they can be properly communicated with the Seller and Listing Agent early in the process. Typically a contract with an FHA 203k would not require a Purchase Contract be written any different then a Standard FHA Contract would be. With the VA Renovation Program plan on needing to combine both the Purchase Price with the Renovation budget on the contract as one total to allow for the 100% Financing aspect. A note can be added to reflect what amount applies to the Purchase in which Realtors will be paid based on, and what amount applies to the Renovation Budget. (consult your lender for specific requirements)

General Program Guidelines

FHA Limited 203k

  • Both Purchase & Refinance Allowed
  • Refinances require 2 appraisals (As Is & After Improved Value)

FHA Standard 203k

  • Both Purchase & Refinance Allowed
  • Refinances require 2 appraisals (As Is & After Improved Value)

Fannie Mae HomeStyle

  • Can lend up to 95% of after improved value up to Conforming loan limits
  • 1-4 units properties allowed

THE VA RENOVATION LOAN

  • Newest Renovation Loan Program in the Market
  • Purchase & Refinance allowed

JUMBO RENOVATION

  • Available programs in this category would be specific to properties that require loan amounts over $424,100.00 as of 2017

Our Motto is The Renovation Mortgage Process Revealed

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