CAN YOU GET A VA LOAN TO BUILD AN ADDITION ON TO YOUR HOME?

1 Answers

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   Veteran Banker on Jan 01, 2012 Reply

   VA Home Improvement Loans are available for veterans and people who already have an existing VA Loan on their home and want to make some repairs or improvements. The Department of Veterans Affairs added VA Home Improvement Loans into the VA Loan Program so that veterans and qualified military personnel have an affordable means of altering their homes.

   The process for getting a VA Home Improvement Loan is much simpler that the initial process for the original loan, since the same paperwork can be used for both loans.

   VA Home Improvement Loan Features:

   Offer 100% financing options with no cash down
   No pre-payment penalties
   Competitive rates
   Easier qualification than with conventional loans
   Amounts of up to 90% of the home value
   VA Home Improvement Loan Uses
   VA Home Improvement Loans can be used in a variety of ways, provided the money goes toward improving your home in some way. Many veterans use VA Home Improvement Loans to make additions and improvements to their home that raise its resale value, so when it comes time to sell their home they get a large payoff.

   In addition, veterans have used their VA Home Improvement Loans to:

   Repair roofs
   Add garages or additions
   Remodel their home
   Install new windows
   Install new heating, air conditioning and ventilation systems
   Do plumbing repairs or improve their current plumbing system
   How To Qualify for a VA Home Improvement Loan
   As long as you already have an existing VA Loan in good standing and you have equity in your home, you can apply for a VA Home Improvement Loan. Surviving spouses of deceased veterans who have not remarried and have an existing VA Loan may also apply. In addition, other qualified military personnel, National Guardists and Reservists who have an existing VA Loan in good standing can apply as well. The Department of Veterans Affairs has a form on its website which explains the necessary qualifications for a VA Home Improvement Loan.

   As VA Loan specialists, we understand the process and its intricacies and would be more than happy to explain any portion of the process or additional information you need. Just say the word.

   Limitations on VA Home Improvement Loans
   Veterans and people with existing VA Loans can borrow up to 90% of the equity they currently hold in their home. Previously, the VA capped the maximum loan amount at $25,000 for VA Home Improvement Loans, but that amount has since been lifted to accommodate the increased cost of living in American society. These days, you can take out whatever amount is proportionate to 90% of your equity.

   VA Home Improvement Loans can run for up to 15 years. If you borrow less than $3,000, the VA uses a guarantor rather than a mortgage to guarantee your loan.

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