Choosing between VA renovation and traditional home renovation loans, or a VA loan in general doesn’t have to be tricky. It all depends on your situation and needs.
For example, VA renovation loans allow you to purchase property and rehab it where some traditional home renovation loans don’t allow you to buy the land. And by taking a VA renovation loan you’re combining a traditional loan to purchase the property and a renovation loan to rehab it saving you time and money. Although this sounds good, VA renovation loans aren’t right for every situation.
VA renovation loans can only be used to purchase a primary residence and on repairs or upgrades that improve the safety and livability of the property. You cannot use VA renovation loans for vacation homes or accessory dwelling units like you can with many traditional home renovation loans. There are other restrictions that make VA renovation loans unique from other loan types.
The work done on your home using VA renovation loans must be completed by a licensed VA contractor. Examples of these repairs include:
- Repairing/replacing plumbing
- HVAC, electrical systems
- Roof repair or replacement
- New siding
But on a positive note, a VA renovation loan can be used to make your home handicap accessible or energy efficient. And there are numerous advantages of VA renovation loans over traditional home repair loans. [Read more…]