Introducing the VA Renovation Loan: A Mortgage Made for Military Members
As Michigan’s VA lending expert, we’re dedicated to helping Veterans build a home base for their families by offering customized and affordable mortgage options. After the VA hit a home run for Michigan Veterans by expanding lending guidelines to include condos, we’re excited to roll out a new financing option that further expands housing options for military members—our VA Renovation loan.
This zero-down mortgage option combines the benefits of VA loans and renovation loans, allowing military members to transform any house into their dream home. Here are a few reasons why we’re excited to offer our new VA Renovation loan.
Zero down payment and no monthly private mortgage insurance (PMI). Most homebuyers are required to put at least 3-5% down on a home and pay private mortgage insurance (PMI) if their down payment is less than 20%. With the VA Renovation loan, borrowers aren’t required to put any money down or pay PMI. This significantly lowers the amount of money you owe at closing, reduces your monthly mortgage payment and can save you thousands of dollars in the long run.
Low rates and fees. Interest rates on VA loans are typically a half point lower than conventional loans. While a 0.5% difference may not seem like much, it can add up to thousands of dollars in interest saved. Veterans are also exempt from paying a number of closing fees if a 1% origination fee is charged at closing.
Property tax exemption. In Michigan, disabled Veterans are exempt from paying property taxes. This benefit also applies to spouses of Veterans in the unfortunate event their significant other should pass away.
Flexible qualifying and credit requirements. While every mortgage loan has a specific set of underwriting guidelines each applicant must meet in order to qualify for the loan, the qualification requirements for VA loans are more flexible, including a minimum 620 FICO score.
Fund renovations without dipping into personal savings. In addition to financial flexibility that comes standard with all VA loans, this loan option allows Veteran homebuyers to turn any home into “the one” by rolling renovation costs into one mortgage loan. By bundling home improvements with your mortgage, you’ll be able to pay off the cost of renovations over the life of your loan.
Design on a dime. With zero money down and no PMI, military members won’t have to tap into their savings accounts to create the home they’ve always wanted! With the VA Renovation loan, you can make up to $35,000 in renovations, including updated kitchens, high-end bathroom finishes, personal touches and more!
Build equity before moving in. One of the major perks of getting a VA Renovation loan is that you can start building equity in your new home before you even move in. By making improvements that increase the value of your home now, you’ll build equity in your home.
Interested in learning more? Send us a message! We’d be happy to put you in touch with an experienced member of our lending team who can discuss details of the VA Renovation loan with you.