Did you know that aside from buying or building a new home, veterans can actually use VA loans for home improvements? Everybody knows that updating a home can cost a lot of money but if you’re a veteran who is eligible for a VA loan can borrow as much as 90% of your home equity and use it for home improvements. This is something a veteran should take advantage of because of the VA loan’s advantages. But just like a typical VA loan application, one has to submit the necessary requirements and prove eligibility.
So why should you consider a home improvement?
For one, it increases your home equity. Of course it also adds comfort and value to your home. Now what types of home improvement projects can you work on? Here’s a quick checklist of what you can do.
- Roof Repairs – This is probably one of the best ways to use your VA loan since large improvements like roof repairs cost a lot of money. Installation of shingles or replacement of old ones cost somewhere from $2-$4 per square foot while flashing around the chimney costs about $300-$500.
- Flooring repairs – Another great way to spend your VA home improvement loan is by installing or repairing your home’s flooring. With your loan you can have your floors sanded and finished or you can install a ceramic or vinyl floor or install a wall-to-wall carpet. The costs usually range from $1.50 to as much as $22 per square foot for the services mentioned above.
- Heating and Air Conditioning installations – Replacing the heating and air conditioning system costs somewhere from $1,500 to $4000 but if you are only going to install a humidifier or an air cleaner, it’s priced at $300-$700.
- Bathroom remodeling - Statistics show that bathroom remodeling adds more value to a home. A typical bathroom remodeling ranges from $7,000 to as much as $16,000. Why is it so expensive? Though the bathroom is not the biggest room in the house, when it comes to renovation you have to call different people to remodel it – plumbers, electricians, tile contractors, sheet rock contractors, etc.
- Kitchen remodeling – Based on annual realtor group polls, it was found that kitchen remodeling adds the most value to your home. (Yes, it beats the bathroom remodeling numbers.) This type of remodeling starts from $8,000. You can update your countertops, the sink, cabinets, range, oven, the dishwasher, fridge, and microwave.
It is still more cost-efficient to repair and update your home than move into a new one. Better get started and apply for a VA home loan so you can enjoy the benefits of a newly improved home.
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I have a balance on my Certificate of entilement for the VA. I don’t have a lot of equity on my house yet but I would like to do some home improvements. Could I still us this entitlement to improve the value of my home even though I dont have equity?
Hello Issac,
Good question- But your dealing with two very separate issues here….
Your VA eligibility certificate means you are “eligible for VA loan financing.” And, provided you meet VA loan guidelines, you can get a VA loan.
The lack of equity in your home or the fact that you want to make home improvements is a separate matter altogether. While you are eligible for VA financing, you can’t pull cash out of your home to make improvements with no equity.
Without equity this transaction is not possible.
I already have a VA home loan on my current principal residence. Is the VA home improvement loan a seperate loan from my current VA home loan? OR
Is this just another name to “refinance of my current VA loan” and pull money out of my equity?
It’s one in the same. Essentially you are refinancing your VA home loan and using your VA eligibility to qualify for the new loan. The cash out is taken against your existing equity. The lender requirements may very but essentially your VA loan can be used to buy AND / OR repair a home.
Hi, my husband and myself are both veterans who have never used our Certificate of entitlement. We are very interested in purchasing a home that needs some repair work and also has some code violations from the previous owner. Will the VA help finance the repairs prior to us purchasing the home or can we buy it “as is” and then take out a separate construction loan to cover the cost? Thanks!
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