The Department of Veteran Affairs released new guidelines for “100 percent financed purchase-rehabilitation loans” for military Veterans. This means that purchase-rehab VA loan would cover renovations costs and provide another avenue for military vets to take advantage of no-down-payment assistance. Real estate professionals around the industry have hailed this as a much-needed guideline, according to Realtor Magazine.
New VA Loan Guidelines
Lenders familiar with VA Loans know that a VA-financed home had to meet a certain standard to be accepted. A rule that is in place to make sure Veterans are getting a home that does not require work to be done. This new guideline allows the Veteran financing to bring a home up to the standards of the VA. This is good news for Veterans, as it increases the total number of houses available to purchase backed by a VA Loan.
The work is limited to repairs and upgrades and must be completed within 90 days of receiving a loan. Veterans are not allowed to use the money for structural additions, although there are ways to add a room if it doesn’t require you to take away a load-bearing wall.
Looking to Take Advantage?
Your VA Loans are a powerful tool given to you by the Government. If you have not considered purchasing a home with a VA Loan, now is a good time to talk with a lender. However, not all lenders are military friendly. It is important to find a local lender who knows exactly how to maximize a VA Loan so you can be accepted into the home of your dreams. Do you know a lender? Ask them if they are aware of these new guidelines. If they say yes, it is a good sign they are experienced in VA Loans!
You can also fill out the form on this page and we can set a meeting with a local VA Loan expert. At the VHA, we work with many lenders and would love to recommend one to you!