VA Escrow Holdback Renovation Loan

For years, veterans have been without a VA Renovation mortgage option.   Well, that wait has come to a glorious end!  Welcome to the era of the VA Renovation home loan.  

Apply for a VA Home Loan Now

The VA Renovation loan resembles an FHA 203k or HomeStyle home loan.  With it, veteran’s can finance repair and renovation costs into their home loan.  Furthermore, VA Renovation loans are for both purchases and refinances.

VA Renovation Loan Based on Home’s Future Value

Future value is the backbone of a Renovation loan.  VA appraiser‘s forecast a home’s value on VA Renovation loans. In short, future value equals a homes value after repairs & improvements are completed.  However, the appraiser gives a concrete future value long before any renovation work begins.

Hence the name – “future value.”  Future value gives veterans access to future equity before they have it.  As a result, veterans leverage their future equity to finance repair and improvement costs.For example, let’s assume the following:

  • Home is worth $300,000 before improvements
  • VA appraiser values home at $400,000 once specific improvements are completed

As a result, this home is valued at $400,000 on a VA Escrow Hold-back Renovation loan.

VA Renovation Loan Rules

  • Purchases and refinances allowed
  • $1,000,000 maximum loan amount
  • 90 days to complete work
  • Repair costs up to 25% of future value allowed
  • Maximum of 3 contractors
  • 0% down – equity required (applies to local conforming loan amounts)

Learn more about VA Home Loans

Eligible VA Renovation Loan Repairs & Improvements

VA Renovation loans allow different types of repairs.  For example:

  • Roof repair
  • Insulation & Siding
  • Paint
  • Kitchen updates
  • Electrica, plumbing & septic
  • HVAC
  • Repair in-ground pools
  • Install or repair driveways
  • Flooring
  • Termite treatment
  • Foundation Repair

Apply for a VA Home Loan

Veterans finally have a home loan that helps them renovate their home.  Funding renovation costs with a VA Renovation loan improves the condition and value of a veteran’s home without the out of pocket expenses associated with a rehab.

By Jeremy House


  1. […] renovation increase your home’s value and your quality of life?  Of course, you need money to finance the renovation project.  If only you had the equity the renovation will create at your disposal today.  Then, you could […]

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