Up To $2,000,000 Extensive Rehab Options Available Under Our Portfolio Renovation Loans & $3+ Million Loan Amounts.
We offer a full suite of portfolio renovation loans at $50,000 and $200,000 amounts and conventional portfolio options, allowing up to $2,000,000.00 in extensive renovation work.
Repairs rolled into one loan are easier to qualify for than a 2nd mortgage, also known as a home equity loan, and come with one fixed-rate mortgage.
Our VA Renovation program allows for product terms of 10, 15, 20, 25, and 30-year terms, typically with interest rates lower than comparable FHA 203k, FNMA Homestyle®, and USDA Repair Escrow programs.
Unlike other renovation loan programs such as the FHA 203k, Fannie Mae Homestyle®, and USDA Repair Escrow, this VA program requires no mortgage insurance (MI). So, if you are a Veteran, this is the product you want to choose over the other options available if no structural repairs are required.
For Purchase loans, this product can be used on existing built homes, foreclosures, short sales that need repair and design updates, and minor updates to existing homes for purchase or refinancing. The repairs can be completed by only 1 General Contractor (GC), which may be able to use multiple subcontractors if required underneath the GC.
The borrower cannot complete any of the repairs themselves or act as the general contractor, and ALL improvements must be achieved in a six-month term. The work must begin within 30 days of the loan's closing and not cease for more than 30 days. The GC must submit a qualifying bid outlining all work to be completed within 180 days.
Draws and disbursements are determined based on the percentage of work completed, and no mortgage payment reserve can be financed in the property. Additionally, the property cannot be vacant for more than 15 days. A 10% contingency reserve is required on the VA renovation loan for any overages or miscalculations in repairs.
Eligible improvement types are Eliminating health and safety risks, connecting to public water & sewer systems, repairing or replacing plumbing, heating, AC, and electrical systems, making changes for improved functionality and modernization, new roofing as long as structural integrity is intact, siding, gutters, and downspouts, energy conservation improvements, improving accessibility for persons with disabilities, repairing fencing, walkways, and driveways, new refrigerator, cooktop, oven, dishwasher, built-in microwave, washer, and dryer, repairing or removing an existing in-ground swimming pool, installing, repairing or replacing exterior decks, patios, or porches, covering lead-based paint issues.
Ineligible improvements that are structural or considered luxury are not allowed. These would be repairing foundation issues, oil tanks (repair, removal, remediation), any repair/installation for private water systems –(Wells), any repair/installation of private waste management systems (Septic Systems, Lagoon, Cesspools, Pits, etc.), mold remediation, moving another structure to the site or room additions to the exterior of the property, landscaping site improvements, new swimming pools, outdoor saunas, whirlpools, or bathhouses, tennis or basketball courts, satellite dishes, barbeque pits, outdoor fireplaces or hearths. Additionally, tree surgery is not allowed unless it endangers existing improvements to the property. Also, any repair completed by self-help or “do it yourself” or that takes more than four months to finish is not eligible. If the scope of work requires more than three draws per specialized contractor or the proposed repairs/improvements need detailed plans, engineering, or architectural exhibits.
Eligible property types are a bit different for VA than its FHA counterpart. We allow renovations on all eligible, doublewide, and triple-wide manufactured homes, modular homes, single-family, multi-family, ICF, SIP, Barndominiums, Condos, Metal homes, and other unique home styles.
Ineligible property types are singlewides, demolished or razed homes, relocated structures, mixed-use properties, commercial properties, co-op properties, investment properties, or mobile homes on leased land. We may have investment renovation programs available under our portfolio programs, but this is not a VA-eligible program.
There are specific requirements of the General Contractor, Insurance and Liability Requirements, Appraisal Requirements, Bid Requirements, Inspection, and Disbursement Requirements, and specific fees can be rolled into the closing. You will want to discuss these additional requirements with your banker once you decide to move forward.
Additionally, since these loans are treated as New Purchase or Rate and Term Refinance, the maximum allowable cash back to the borrower cannot exceed $500.00. However, if extra cash is needed, speak to a banker to access additional personal cash-out loans of up to $50,000.00 before or after closing the loan.
620 Minimum Credit Score Requirement.
If you are ready to start your VA Reno Loan today, complete an eligibility request or call us to speak directly. We’re eager to help you with your loan and sincerely appreciate your service to our country!
Should you require repairs of more than $50,000 or need to have the renovation completed on second homes or investment property, you will want to look at our FHA 203k Standard, FNMA Homestyle® renovation, or portfolio programs. You can view our renovation loan guide here, which is updated for 2024.
Richie, OK... so you've officially done something I've never seen in 22+ years selling real estate. Closed a VA Loan on 224 Acres, with a Manufactured Home. CONGRATULATIONS! and THANK YOU!!! Admittedly, I was skeptical (more like pessimistic) when James told me you were going to get this VA Loan completed. And I had many doubts along the way, because I'd seen so many VA Lenders fall flat on their faces, just before the Closing. BUT... You got the Job DONE! Occasionally, I find someone out there who has done an Outstanding Job, helping my Clients... and You are one of these! I'm now officially a FAN of You and Your Work. I would be honored to promote you and your services to other Agents within our company, and I intend to do so. I will call you when I've caught up on my work a bit... and learn more about how I can do my job better on the next VA transaction. ~Tom K. Realtor
We have over 25 years of working as a team helping current and future homeowners find the most competitive fixed-rate VA mortgage loans while navigating challenging economic instability. We promise never to spam you, sell your information, bombard you with robocalls, or provide anything but a clear, transparent conversation from start to close! It all begins here!
Most banks and loan professionals have never closed this loan before; we’ve been doing them for years!
Aside from VA Home Loans, we offer so many options. From Construction To Bridge Loans, Down Payment Assistance Programs, Doctor Loans, Veterinarian Loans, Nurse Practitioner Loans, First Responder Loans, Foreign National, ITIN, and Extensive Renovation Projects, even Manufactured Homes, each loan is as unique as the home! Treating our customers with extreme care and attention to detail, we can’t wait to serve you. We’re solution-oriented, efficiency-motivated, and highly skilled bankers working for you; let us help you today!
THE FEDERAL SAVINGS BANK IS NOT AFFILIATED WITH OR ACTING ON BEHALF OF THE FHA, USDA, VA, OR THE FEDERAL GOVERNMENT.
*Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.
*Messaging and Data Rates May Apply.
*VA eligibility is required for VA loan products. USDA loans are only available in USDA-eligible areas as designated by the USDA.
*We do not offer new dealer-manufactured home loans in New York, but we do offer modular and site-built land and home construction.
*Qualification for up to $50,000 extra is for qualified borrowers and can be applied to all loan programs. This is a separate unsecured consumer loan we will underwrite in-house at the same time as your requested mortgage loan. Please contact your banker to request this program and the applicable rates, terms, and conditions. Consumer unsecured lending programs prohibit loan proceeds from being used for down payment.
REALTOR® is a registered trademark of the National Association of Realtors and is not affiliated with NationwideHomeLoansGroup.com or The Federal Savings Bank.
†Subject to applicable law and lender approval, when represented by one of our participating real estate brokerage companies during the purchase or sale of a home or land, eligible Consumers may receive a rebate of up to thirty percent (30%) off of the fee to be received by the participating real estate brokerage company representing the respective Consumer, at closing, which rebate will be applied exclusively toward paying down that Consumer’s applicable closing costs. In no event shall any rebate be greater than the aggregate of all closing costs. Issuance of a rebate is subject to a participating real estate brokerage company’s receipt of its fee. The following states condition, or do not permit, the granting of a rebate by real estate brokerage companies (list is subject to change at any time): Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey, Oklahoma, Oregon, and Tennessee. No remuneration is paid to The Federal Savings Bank or to any of our Bankers. This is a free program offered exclusively by us to help our consumers save on their real estate transactions.
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