Our VA Renovation Loans Allow Up to $75,000 for Improvements!

Mortgage and Lending with Blue Ridge Bank Mortgage NMLS # 78989

We are pleased to announce that OVM Financial’s VA renovation loans now allow up to $75,000 in renovation costs. This is breaking news to an already fantastic product to help military Veterans buy a fixer-upper home and potentially finance all improvements!

Did You Say VA Renovation Loans?

If you haven’t heard of our VA renovation loans, you’re not alone. This is a relatively new product, yet a very powerful one. Probably the largest benefit is the ability to combine 100% of the purchase price and home improvement costs into one loan. This product is eligible to military service members, Veterans, surviving spouses with VA loan eligibility. Therefore, any VA qualified buyer or homeowner could obtain our VA renovation loan just like a traditional VA loan.



VA Renovation Loans for Purchase

By now, the ideas have to swimming through your head. Think of all the homes you have seen that were in the perfect location, had great structure, but needed work. So, a VA renovation loan just became a game changer! Did that kitchen need updated counter tops, appliances, tile floor, and paint? Done! Maybe the master bath needs a cool shower, a jacuzzi tub, cabinets, and don’t forget the ever-popular subway tiles. Check that off! Finally, the builder grade neutral carpet and paint throughout the house just aren’t doing it for you. Do you think hardwood floors, tile, and new paint would make this home your oasis to come home to every day? Consider it done.

VA Renovation Loans for Existing Homeowners

Maybe you don’t want to sell. The current house is great and all, but there are items on the wish list, and the funds just aren’t available yet. Maybe there isn’t enough equity to get a home equity line of credit to finance the improvements. I guess you could rob from the retirement account or get an unsecured loan at a high interest rate.

Now, think about what we have been saying about this VA loan. Being able to make home improvements and use the “after completion”, otherwise known as “subject to” appraised value to determine your loan amount allows a lot more room to include these costs. Just think, if a home is worth $200,000 as is and $185,000 is owed on it. Then a home improvement contractor quotes $40,000 in renovations. There’s only $15,000 in home equity. Now, let’s say the home would appraise for $230,000 after improvements. So, then we are looking at the future appraised value of $230,000 minus a payoff of $185,000, which equals $45,000 in usable equity!

Finally, the answer you have been looking for. No need to uproot the family, move into another school district, or get to meet all new neighbors again. Mostly, being able to fall in love with your home all over again.

VA Renovation Loan Benefits

Obviously, there are advantages to these VA loans. Besides a home makeover, there are other benefits to consider.

  1. Keep funds in the bank
  2. Include purchase price and improvements in one loan
  3. Buy homes other buyers can’t
  4. Find the diamond in the rough
  5. Buy a foreclosure home
  6. Buy at a discounted price
  7. Potentially no money down
  8. Put your own stamp on the home

Already Have a VA Loan? Get 2 at Once!

Recent VA Renovation Loan Enhancements

The biggest “improvement” in our VA home improvement loan is the increased amount of renovation costs allowed. This went from a great $35,000 to an amazing $75,000. Just like the prior level, “renovation costs” includes the actual improvement costs, a contingency reserve, and renovation fees. Renovation fees include such items as inspections, title updates, etc. Another change involves higher renovation levels. When the renovation cost exceeds $50,000, the loan requires another participant in the process. This person is called a HUD Consultant and this person is heavily involved in discussing and reviewing the improvements needed and/or desired for the property. Basically, the consultant is a project manager for the loan.

Other than that, it is the same excellent VA home improvement solution for VA eligible buyer. But, now it is a renovation loan on steroids!

Need Another Type of Renovation Loan?

VA Renovation Loans Help Sellers

In many markets, homes are receiving multiple offers and are under contract so fast, but not in all markets and not all properties. Sellers are sometimes dealt with a slower market/neighborhood or maybe just an outdated property that isn’t showing well. Therefore, some strategies need to be put in place to sell without giving the home away. Think outside the box! Maybe your showing feedback says that the home needs a lot of updating or just a little? Do you really want to spend the money yourself and make the mistake of choosing colors and options that buyers don’t like?

What if the appraisal report required a lot of repairs that you cannot afford? How about this solution for these issues?

Tips to Ace The Real Estate Appraisal Report

Seller Marketing Idea

Have a discussion with your Realtor and OVM renovation specialist about marketing the home as what it could be. Paint a picture of the future home. Just think, a buyer has about anything in a Lowe’s or Home Depot store available to put into your home. How do you let buyers know? Request a bid from a licensed contractor that shows options for areas in need of the most work. Then, showcase samples in each room of the house including color samples. Most buyers have seen enough HGTV picture these ideas in place of the current home. It would not be surprising to hear something like, “Remember how they remodeled that kitchen on HGTV’s Fixer Upper? That would be perfect for this home!

Additionally, our renovation loan officers are ready to provide answers on financing these dreams.

renovation loan


Link to original article written by Russell Smith

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Russell Smith - Your Mortgage Lending Expert

NMLS # 78989

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