VA RENOVATION & ENERGY EFFICIENT MORTGAGES
Improve the Home You Buy. Make the Home You Own Work Better.
Qualified Veterans, active-duty service members and eligible surviving spouses may be able to use VA-backed financing to purchase or refinance a home while financing certain repairs, renovations or permanent energy-saving improvements.
Veteran Mortgage Solutions helps you understand which options may be available, what improvements may qualify and how the financing process works.
Free Consultation | Personalized Guidance | Veteran-Focused Mortgage Specialists
VA RENOVATION & ENERGY EFFICIENT MORTGAGES
Improve the Home You Buy. Make the Home You Own Work Better.
Qualified Veterans, active-duty service members and eligible surviving spouses may be able to use VA-backed financing to purchase or refinance a home while financing certain repairs, renovations or permanent energy-saving improvements.
Veteran Mortgage Solutions helps you understand which options may be available, what improvements may qualify and how the financing process works.
Free Consultation | Personalized Guidance | Veteran-Focused Mortgage Specialists
Purchase & Improve
Finance an eligible home purchase while incorporating approved repairs or alterations into the transaction.
Renovate a Home You Own
Certain renovation costs may fit an eligible VA refinance when program and lender requirements are satisfied.
Improve Energy Efficiency
Eligible permanent energy-saving improvements may be incorporated through a VA Energy Efficient Mortgage.
Keep VA Loan Advantages
Qualified borrowers may continue to access key VA financing benefits based on the transaction and eligibility.
VA RENOVATION FINANCING
A VA Loan Can Do More Than Finance the Purchase Price
A home does not always need to be perfect on the day you find it.
VA renovation financing may allow eligible improvements to become part of a qualifying purchase or refinance transaction.
The exact scope must meet VA requirements, lender guidelines, appraisal requirements and applicable building codes.
The Project Matters as Much as the Property
Renovation transactions can involve contractor bids, plans, specifications, permits, appraisal considerations, inspections and controlled disbursement of renovation funds. Veteran Mortgage Solutions helps you understand those requirements before you commit to a property or project.
Potential Project Categories
Roofing and exterior repairs
Heating and cooling systems
Plumbing or electrical improvements
Kitchen or bathroom renovations
Flooring and interior repairs
Safety or property-condition improvements
Accessibility-related modifications
Other approved repairs or renovations appropriate for the property
HOW IT WORKS
How VA Renovation Financing Works
1
Confirm VA Eligibility
Review your existing mortgage, estimated equity, VA eligibility and goals.
2
Review the Property
Identify the home, proposed repairs and whether the project may fit program requirements.
3
Define the Work
Gather contractor bids, plans, permits or other documentation that may be required.
4
Complete the Appraisal
The appraisal may consider the proposed improvements and expected completed value.
5
Close the Loan
Approved renovation funds are generally controlled rather than paid directly to the homeowner.
6
Complete the Improvements
Funds are released as approved work progresses and required inspections are completed.
Up to $6,000
CURRENT VA EEM STRUCTURE
VA ENERGY EFFICIENT MORTGAGES
Make Qualifying Energy Improvements Part of Your Mortgage
A VA Energy Efficient Mortgage, commonly called a VA EEM, may allow eligible borrowers to finance approved permanent energy-saving improvements as part of a qualifying VA purchase or refinance loan.
Current VA guidance provides additional documentation requirements for energy improvements above $3,000 and up to $6,000. Energy improvements generally must be permanent and designed to reduce energy consumption.
Examples of potential energy improvements
Solar heating and cooling systems
Weather stripping and caulking
New or additional insulation
Storm windows and doors
Vapor barriers
Other qualifying permanent improvements designed to reduce energy consumption
COMPARE
VA Renovation Financing vs. VA Energy Efficient Mortgage
VA Renovation Financing
May fit an eligible purchase or qualifying refinance
Can involve contractor bids, plans, permits and inspections
Project scope and completed property value matter
Best for homes needing approved repairs or improvements
VA Energy Efficient Mortgage
Can be added to qualifying VA purchase or refinance financing
Current EEM amount is limited to $6,000
Improvements must be designed to reduce energy use
May be used with a qualifying VA IRRRL
VETERAN-FOCUSED MORTGAGE GUIDANCE
Understand the Financing Before You Commit to the Project
Specialized VA financing can involve more moving parts than a standard mortgage. Veteran Mortgage Solutions helps you understand the property, project, appraisal and loan requirements before you move forward.
Review Your Eligibility
Understand whether VA financing may fit your transaction and what documentation may be required.
Evaluate the Improvements
Review the type of work, project costs and whether the improvements may qualify.
Choose the Right Path
Compare renovation, EEM and other mortgage options based on your goals and property.
FAQS
Frequently Asked Questions
Can I buy a fixer-upper with a VA loan?
Potentially. Qualifying VA financing can support certain purchase-and-improve transactions when the property, proposed improvements, appraisal and lender requirements are satisfied.
Can renovations be completed after closing?
Yes, when the transaction is properly structured. Approved funds can be held in a controlled account and released as work is completed and verified.
Can I use a VA renovation loan for cosmetic improvements?
Some projects may qualify, but eligibility depends on the scope of work, property, appraisal and lender guidelines.
Can I finance more than $6,000 of energy improvements through a VA EEM?
The VA EEM portion is currently limited to $6,000. A larger project may need to be evaluated under another renovation or financing option.
Can I finance solar improvements?
Certain permanent solar-related energy improvements may qualify when they meet VA and lender requirements.
Can I add an EEM to a VA IRRRL?
A VA Energy Efficient Mortgage may be used with a qualifying VA IRRRL, subject to applicable underwriting and program requirements.
Do all lenders offer VA renovation loans?
No. Specialized VA renovation products and lender overlays can vary. Availability should be confirmed before you make plans around a specific loan structure.
Will I need a VA appraisal?
Yes. Renovation transactions can involve appraisal requirements that consider the property and proposed improvements.
LET’S TALK ABOUT YOUR PROJECT
Could VA Financing Help You Buy It, Fix It or Make It More Efficient?
Tell us what you are planning. A Veteran Mortgage Solutions loan specialist can help you understand which VA financing options may apply.
Prefer to talk now?
Free consultation. No obligation to apply.
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Ready to Explore Your VA Loan Options?
Whether you are buying, refinancing or simply trying to understand what your VA benefit may allow you to do, you do not have to figure it out alone.
Talk with a Veteran Mortgage Solutions loan specialist and get clear answers about your options.
Serving Veterans and military families from coast to coast, where licensed.
