Today’s Federal Finance and Housing Policy committee meeting was a lively one with great topics including VA Renovation Loans. It’s one of those topics – does that really exist? After hearing from Greg Nelms from the VA and Carol Mitchell from Atlantic Bay Mortgage Group, I can absolutely state that, yes, they do.
Here are some of the details: The VA renovation home loan allows borrowers to make renovations (with exceptions), repairs or improvements up to $31,100 – (max renovation amount of $35,000 with contingency and fees) – on a primary, owner occupied residence. It’s done at the same time as the original mortgage, with everything rolled into 1 payment.
These must be owner occupied or a cash out refinance, and repairs are completed after closing. Eligible properties include detached and attached single family residences, 1 and 2 unit properties. The minimum repairs at $5,000 with a max DTI of 45%.
Now comes the question – WHO does them? Are there any lenders in your community that do them or are familiar with them? I’ve found one in my market. That’s not good!
The good thing? Well, now that we have actual proof that this product does exist, time to have a chat with your favorite lender(s) and see what they have to say. Are they familiar with it? Can they do one? Do they need to research it more? How can you assist?
If your market is anything like mine, this option could open quite a few doors for your military buyers. I know that I’ll be chatting with my lenders when I get back to Tucson. This is something very valuable to have in your Realtor toolkit.