The VA renovation Home Loan is a loan not to many people know about. Many VA lenders either do not know about this loan product or the simply do not do them. If you want to learn more and speak with some VA renovation loan lenders give National VA Loans a call at 855-956-4040.
VA Renovation Loan Video Transcript
hey what’s up guys? It’s Dave from military millionaire. Today I want to talk to you about the unicorn in the room, yes not the elephant but the unicorn. This is the VA Renovation Home Loan and nobody knows anything about it trust me. It took me months to figure out what this was, or they didn’t even exist. It was like this thing I heard about that nobody could answer any questions about, lenders I talked to said no there’s not a thing and there was like this one guy who was like yeah I’ve done that and that set me off on this like hunt like this just legitimate manhunt to figure this thing out so now I want to tell you about the VA renovation home loan this is magic with the VA loan has always been the inspection process people say well it’s a great idea but you can’t really use it for investing because the property has to be in perfect condition move-in condition can’t have any issues with permitting or structure or needing repairs well guess what that’s wrong now so what if I told you that you could buy a fixer-upper without a single penny out of your pocket right zero down like the VA loan but then you could turn around and renovate the entire property and still pay zero out of your pocket and you could buy the property for nothing renovate the property for free and now you own the property with equity without paying a penny out of pocket sounds too good to be true huh well it’s not I have news for you this actually exists so here are a couple of the things that you need to know about the VA renovation home loan it’s amazing the VA renovation loan is good for up to a 100 percent of loan-to-value purchase up to one and a half yes 1.5 million dollars now there is a stipulation there the VA guarantee or the VA guarantee plus equity slash your personal investment has to equal up to 25% of the lesser of the sales price or the after repair value so in laymen terms that means that if you buy a property for a million dollars fix it up and now it’s worth 1.5 million dollars you’re good if you buy a property for 1.5 million dollars and fix it up you’re good so if the sales price is 1.5 or less you’re good if the after we repair value is 1.5 or less you’re good so the VA loan does cap out and that differs based on your area for Hawaii it’s like seven hundred and twenty six thousand right now other places it’s four hundred and some change but what happens is if you buy a house say here where it’s seven twenty five and it’s a million dollar home then you have to pay twenty five percent of the difference over the seven seven twenty five so if it’s a hundred thousand dollars over then I would have to pay twenty five percent of that hundred thousand so eight hundred and twenty-five thousand dollar at home I pay twenty five thousand dollars to buy which realistically is still nothing down now the cool thing is that your equity can be countered in that so if you buy a property that’s worth $900,000 and you pay eight hundred thousand dollars for it now you still can get away with zero down and that’s including the after repair value so in essence you can get into a property for a million dollars or whatever and not pay a penny into it and still not pay any repairs now the cool thing is that you don’t have to buy a property that expensive and a lot of places like San Diego or whatever you can buy a $200,000 property or $300,000 property and then fix it up for fifty to a hundred grand and now you own a four or five hundred thousand dollar property with equity involved and you paid nothing out of pocket so let’s talk some of the details now one of the things people always worry about is your funding fee so it’s true that you have to pay two point one five percent for your first va loan or three point three for any subsequent if you put zero down if you put five percent down or ten percent down that number changes but if you’re a disabled veteran that becomes zero the funding fees really not anything crazy to be worried about it gets tacked on to the end of your loan so you can pay the funding fee or you can just wrap it into your loan and again pay not a penny out of pocket or if you’re disabled and retired then you don’t pay a funding fee at all now surely there are some limits to the amount of money that you can be loaned for repairs and the answer is yes it has to be at least five thousand dollars worth of repairs but there’s no limit to the maximum amount that you can renovate so you can buy this crappy property and put three hundred thousand dollars into it and that’s fine it just can’t be four thousand dollars so if that small of a renovation you need to like break something and spend the five thousand I’m not recommending that but that’s just kind of funny that you would ever really need to do a five thousand dollar renovation here’s where this loan gets really cool you can even do structural repairs this means that you can relocate load-bearing walls you can do additions you can add a room so new construction you can even purchase a house that is completely uninhabitable at the close of escrow that means that you could buy a teardown house and use the renovation loan to fix it up flip it rebuild it whatever and move on with your life with equity that is HUGE because the biggest complaint about the VA loan in the past has been that you have to have a perfect house to move into it and that’s simply not true anymore with this amazing VA renovation loan alright the repairs have to start within 30 days of closing and they needed plan to be done by six months now obviously there’s times where that goes over because of construction delays but the plan has to be to be completed within six months and finally your contractors have to be vetted and have a VA build ready which is actually a good thing because that means you’re not going to get some scum Lord contractors you’re gonna get a decent contract or at least a contractor that is proficient or competent enough to have gone through the VA vetting process and passed so your odds of having a really bad contractor experience are a lot lower which is huge because contractors is often a sore subject for people who do renovations or rebuild I thought about going through the entire list of repairs and renovations that this loan could cover but it is so extensive that I did not want to do a 20 minute video so suffice it to say this so this is kind of mind-boggling it will even pay for the purchase or installation of new appliances so you can get all your new appliances at Home Depot or whatever and wrap that into your innovation loan and pool repairs so if it’ll cover pool repairs and your new appliances it’ll probably cover everything else so the list is quite extensive do your research but uh basically everything okay to wrap this whole idea up you can buy a fixer-upper for nothing out of pocket fix it up for nothing out of pocket you get to reap all the equity that was created in this process as your live-in flip you move into the property and then when you move out you cash flow you sell the property whatever this is like the missing link for investors for using the VA loan this is huge if you don’t grasp how big this is then you need to do a little bit more homework because it’s huge absolutely awesome I’m currently looking to utilize this loan right now and I just it’s amazing so the reason nobody knows about this loan is that it was only pioneered about three years ago there’s a kind of a newer loan loan Depot is actually the people who I met with about this and they kind of test piloted it and for a little while there were limits as far as how much you can do renovation but that’s gone it is now full rain past the test pilot program and it’s just out there ready to be used now a lot of lenders still don’t know about it or still haven’t utilized it because it’s kind of new territory so for that reason I recommend that you shop the lenders right so with the VA loan there’s not a whole lot of requirements a lot of the requirements are placed by the bank for example I utilize the bank or I talk to a bank about using the VA loan and they were like 40% debt-to-income that’s our cap and then I talked to another Bank it’s like 65 percent well that’s a huge disparity so make sure that you shop your lenders and if they tell you they can’t do the renovation loan or if they tell you it doesn’t exist you might want to look somewhere else now I’m not necessarily endorsing these people but I will put the email down below for the gentleman that I sat down with and had lunch about this because not only was he able to do it he has already done it several times that he’s extremely confident extremely competent he’s willing to help you and if he can’t lend in your area his team can and he will link you up with somebody else who’s competent and confident so definitely check him out if you got questions linked below I also will link to the blog post that I wrote about this you can read the full list of repairs but guys check it out I cannot stress enough how huge this VA renovation loan is go do your research utilize it and then tell me how it went for you so that I can I want to I want to help take you and your amazing success story and show the world the power of the VA renovation loan so guys subscribe click the little bell so that you can get notified of the updates because this VA renovation loan movement is gonna be huge and you don’t want to miss it