FOR HOME IMPROVEMENTS? CAN I GET A VA LOAN

VA loans are an option for active and retired military men and women as well as spouses who qualify.

The loan can be used to buy or build a home that will be your primary residence.

If you are wondering whether or not a VA loan can be obtained for improvements to your home, it is possible in a couple of ways.

CASH-OUT REFINANCE

One of the ways of getting the cash needed for home repairs is Cash-Out refinancing.

Most of the time this is the best option for veterans who already have a VA loan and have equity in their home.

If this is a choice through your lender your loan can be refinanced and you can get cash for home improvements.

Generally, this will also reduce the interest rate and can result in lower loan payments because it replaces the original loan.

ENERGY-EFFICIENT IMPROVEMENTS

Another type of loan that many veterans choose is an energy-efficient mortgage.

This type of loan will allow you to make improvements to your home to make it more energy-efficient.

Up to $6,000 can be borrowed by veterans who use the VA Home Loan Guarantee Program to refinance their home or purchase a home for the following types of improvements:• Insulating a water heater

• Installing thermal or storm windows and doors• Solar heating and cooling systems

• Purchasing an energy-efficient furnace or upgrading an existing one to a more energy-efficient unit• Insulating doors, walls, attics and floors

• Heat pumps

• Clock thermostats

• There are other improvements that can be included as long as your lender agrees they qualify for lowering utility costs.

You will have to submit proof to the lender that the cost of the improvements will reduce energy costs enough to make up the difference in the amount added to your loan.

Get an estimate from your utility companies of how much you can save with the improvements you want to make as proof for your lender.

Of course the improvements will have to be approved by the lender.

This money can be put into an escrow account so the repairs can be made after closing the loan and to ensure this is the amount you will spend.

If the improvements you are planning to make are $3,000 or less, you will not have to have a second appraisal on your home.

Receipts for improvements are the only thing your lender will require and labor is not included.

This option is usually chosen for improvements that are needed right away rather than later.

VA RENOVATION LOAN

Another choice that is not widely known is a VA Renovation loan.

It can be used for a number of renovations including:• Remodeling bathrooms and kitchens

•Updating HVAC, electrical, and plumbing

•New flooring, windows, and paint

•Finishing an attic or a basement

VA guidelines for this loan are basically the same as for other loans. The repairs must be started within 30 days of the loan and must be completed in 3 months.

The home must also be the primary residence of the veteran.

The only problem you may have with this type of loan is finding a lender.

Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.  

For more details call 480-351-5904. Visit the site at http://sandiego.valoansforvets.com/

VA LOANS FOR VETS7600 E. Doubletree Ranch Road #200Scottsdale, AZ 85258Phone: (480) 351-5904Email: jimmyv@fcbmtg.com