VA Escrow Holdback Renovation Loan Available

VA Escrow Holdback Renovation Loan

VA Renovation Escrow Holdback Home Loan

Military veterans now have access to a great VA – RENOVATION ESCROW HOLDBACK HOME LOAN.  This home loan option is much like the FHA 203k, HOMEStyle, escrow holdbacks and Jumbo Renovation Loans that we offer but now – for eligible veterans using a VA Home Loan.

Veterans can use this VA Escrow Holdback Renovation loan to finance the cost of either required repairs and/or desired improvements to a home.  The great news is that this product is available for both new home purchases and for refinances.

Based on Future Value NOT Present Value of Home

The VA Renovation loan is based off of the homes future appraised value (value after repairs & improvements are complete).  This opens up more room to finance more improvements,  For example, if a home is worth $300,000 currently and an appraiser states that same home will be worth $400,000 once the improvements are complete, the new VA Escrow Holdback Renovation loan would be based on the $400,000 future value.

Basic VA Renovation Loan Guidelines:

  • Eligible on Purchases and Refinances
  • Max Loan Amount up to $1,000,000
  • Repairs can take up to 90 days from closing to be completed
  • Offered on 15, 20, 25 and 30 year fixed rate term options
  • Repair cost total can equal up to 25% of the future appraised value (value after renovations are complete as determined by VA appraiser)
  • No added escrow holdback fees (*unless an engineer’s report is required)
  • Up to 3 contractors allowed
  • Minimum credit score of 640 required
  • 0% down/0% equity required (*loans above County max Conforming limit may require a down payment/equity)

VA Renovation Loan Allowable Repairs/Improvements Include:

  • Roof: repair or replacement (covering, underlayment)
  • Gutters/downspouts: install/repair/replace
  • Insulation: ceilings/walls/asbestos removal
  • Siding/windows/doors
  • Paint: interior/exterior/lead paint abatement
  • Kitchen: all appliances/cabinets/ total
  • Electrical: repair/replace/recondition all
  • Plumbing: repair/replace/recondition all
  • Repair/Replace HVAC or other systems
  • Repairing or removing an in-ground swimming pool
  • Installing or repairing fences, walkways and driveways
  • Flooring/subflooring/tile/carpet/wood
  • Termite treatment/damage repair
  • Repairing or replacement of well and septic
  • Weatherization items/repairs/ improvements
  • Foundation Repair

This is a long overdue option for eligible veterans using a VA home loan to purchase or refinance to finance the cost of repairs and home improvements.  It represents a low cost way to help improve the condition and value of your home using their VA home loan benefits.

By Jeremy House

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Jeremy is the Founder of The HOUSE Team and a Sr. Loan Officer/Branch Manager with PrimeLending. Over the past several years he has ranked in the top 1% of all loan officers nationwide and one of the top 200 loan officers in America. In the mortgage industry, the devil is in the details. Jeremy prides himself on being a student and an expert when it comes to everything mortgage related.

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