A VA renovation loan rolls the cost of repairs and improvements into a VA purchase or refinance, so you can buy a home that needs work — or update the one you own — without a separate construction loan or credit cards. The loan is based on what the home will be worth after the work is done. It opens up a whole category of homes that a standard VA appraisal would otherwise reject.
Confirm eligibility, credit and income — and ask for the renovation budget limits on the program.
Read the video script
Found a house in the right neighborhood that needs work? Most buyers walk away. With a VA renovation loan, you don’t have to. I’m Shirley Mueller.
Here’s the idea. Instead of lending on what the home is worth today, the loan is based on what it’ll be worth after the repairs. The purchase and the repair money are in one loan — and with full entitlement, still zero down.
Get pre-approved. Find the home and an experienced contractor. Approve the scope of work. The appraiser values the finished home. One closing. Your contractor gets paid in stages as work is inspected. Final inspection — done.
Roofs, HVAC, kitchens, baths, flooring, energy upgrades — yes. Pools and luxury add-ons — usually no.
Already own your home? A renovation cash-out refinance works the same way. Call me before you write the offer — the budget limits matter.
What is a VA renovation loan?
A VA renovation loan — sometimes called a VA rehab or VA alteration-and-repair loan — is a VA-guaranteed purchase or cash-out refinance that includes money for repairs and improvements. Instead of the loan being capped at what the home is worth today, it is based on the “as completed” value after the work is done. That lets you buy a home that would fail a standard VA appraisal, fix it, and live in it with one loan, one closing and one monthly payment.
What you can (and usually can’t) do
Typically eligible: roofs, HVAC, plumbing and electrical, windows and doors, flooring, kitchen and bath updates, paint, accessibility modifications, energy-efficiency upgrades, and repairs needed to meet VA Minimum Property Requirements.
Typically not eligible: luxury items such as swimming pools, hot tubs and outdoor kitchens, and do-it-yourself labor. Large structural changes and additions depend on the program — ask before you plan around them.
Contractors, budgets and timelines
- Work must be done by an experienced, insured contractor — licensed where your state or city requires it — with a written bid and scope of work.
- Renovation budget limits are set by the lender’s program — ask for current limits early, since they shape which homes make sense.
- Repair funds are held in escrow and paid out in draws as work is completed and inspected.
- Most programs expect work to be finished within a few months of closing.
Funding fee and costs
A renovation purchase uses the purchase funding fee chart (2.15% for first use with less than 5% down); a renovation cash-out refinance uses the cash-out chart (2.15% first use, 3.3% subsequent use). Veterans receiving VA disability compensation are exempt. Expect some renovation-specific costs, such as draw inspections, and build a contingency into your budget for surprises behind the walls.
Renovation loan or construction loan?
If the house already exists and needs work, a renovation loan is the right tool. If you are building from the ground up — or the changes are so extensive the home is essentially rebuilt — look at a VA construction loan.
What veterans say about working with Shirley
4.9 95 Google reviews“We have had the pleasure of working with Shirley on several home purchases and refinances, and she has consistently proven to be the best professional we've ever partnered with. Shirley's honesty and ability to present the best scenarios tailored to our needs has surpassed our expectations each time. She consistently goes above and beyond in customer service, giving us complete peace of mind about the final outcomes. We cannot recommend Shirley highly enough and she will always be our first choice when considering mortgage companies.”
October 2024 · Google review
“I recently worked with Shirley Mueller and her team, and I couldn't be happier with the experience. After shopping around with five different lenders, Shirley not only offered me the lowest rate but also provided exceptional service. She was incredibly responsive throughout the entire process, answering all my questions promptly and ensuring that everything went smoothly. I highly recommend Shirley and her team for anyone looking for the best rates and top-notch customer service!”
August 2024 · Google review
“Veterans looking for a mortgage look no further!! I was absolutely thrilled when I received my pre approval the same day. Shirley called me, and told me that I could start looking at homes. I already had one home in particular that I was sure I wanted. I went to view it the following day,and went under contract. I want to say to any of my fellow veterans who may be discouraged about applying for your VA home loan benefit, or read negative feedback about how difficult it is to aquire that is not true. The process was so easy!! I'm so excited to be a homeowner, and cannot thank the entire team @ Cross Country Mortgage enough!! I would recommend Shirley Mueller over any other VA lender out there. She kept me motivated, and dedicated to securing a home at the best rate in record time.”
August 2024 · Google review
Real Google reviews of VALoansTexas.com, shown word for word. Team members named in reviews were part of Shirley’s team at the time. Read more reviews →
VA Renovation Loan FAQ
Can I buy a fixer-upper with a VA loan?
Yes. A VA renovation loan finances the purchase and the repairs together, based on the home’s value after the work is complete, so homes that would fail a standard VA appraisal can still be financed.
Do I need a down payment for a VA renovation loan?
With full entitlement, no down payment is required when the total loan fits within the as-completed appraised value.
Can I renovate the home I already own with a VA loan?
Yes, through a VA renovation cash-out refinance, which replaces your current mortgage and adds repair funds based on the after-repair value.
Can I do the work myself?
Generally no. Work must be completed by an experienced, insured contractor under a written scope of work.
Can I add a pool with a VA renovation loan?
Typically no. Luxury items such as pools and hot tubs are generally not eligible. Repairs, updates, energy improvements and accessibility changes are.
How much can I borrow for repairs?
Renovation budget limits are set by the lender’s program. The total loan is also limited by the as-completed appraised value.
VA Renovation Loan by state
The VA rules above are federal. Each state guide adds what changes locally — property-tax relief for disabled veterans, residual-income region, community-property rules and more.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
