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With Millennial Home Loans quick online loan application, determining if you qualify for an VA Renovation Loan and for how much, has never been easier.

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VA Renovation Loans.

You Served, You Earned It!

The Zero-Down Payment Renovation Mortgage for our Veterans and Current Military Personnel

VA Renovation Loans Program Guidelines

Loan Purpose

  • Purchase
  • Refinance: Cash out

Credit Profile

  • 620 minimum middle credit score for all borrowers on the loan
    • 620-659: A minimum of 2 qualifying credit scores are required
    • 660+: A minimum of 1 qualifying credit score
  • No foreclosure or short sale within two years of contract ratification date
  • No Chapter 7 bankruptcy discharge within one year of contract ratification date

Amount of Repairs

  • Total renovation cost includes required contingency and reinspection fees
  • If renovation costs exceed $50,000, a HUD Consultant will be required
  • There is no minimum renovation budget

Construction Time

  • No more than four (4) months from closing

Contingency Escrow Reserve

  • 15% of the Contractor proposal


  • Up to 3 draws allowed
  • Draw amount will be based on inspections and percentage of completion

Draw and Title Update Costs

  • Up to 3 inspections at $200 per inspection
  • 1 title update at $100
  • 1 Final Lien Waiver provided by the General Contractor

General Contractors

  • Only 1 General Contractor (“GC”) allowed
  • GC must be registered with the VA. See VA Builder Registration for a list of VA registered builders
  • GC can’t be related to the borrower(s) or an employee/employer of the borrowers
  • GC must be insured, licensed, and bonded
  • GC must provide a detailed contractor estimate itemizing all repairs that are to be completed with costs broken down by material and labor and if applicable permit costs

Loan Amount

  • With zero down, the maximum loan amount is the standard conforming loan limit, which is currently $647,200, or VA High Balance loan limit
  • Down payment required when the purchase price exceeds the standard conforming or High Balance loan limit. Down payment is 25% of the amount exceeding the standard conforming or High Balance loan limit
    • Example: If the VA loan limit for a county is $647,200, this means that if the Veteran has full entitlement, VA will provide a 25% guaranty on the loan up to $647,200. If a Veteran has a contract to purchase a home in the amount of $550,000, the lender may require the Veteran to make a down payment of 25 percent of the $65,650 ($550,000 – $647,200) difference, which would be $16,412, providing the lender a full 25% guaranty.

Funding Fee

  • Funding Fee is waived for Veterans receiving VA related disability income and surviving spouses of Veterans who haven’t remarried
  • Funding Fee Calculations are as follows:
Type of VeteranDown Payment% for First Time Use% for Subsequent Use
Active Duty, Reserve, National GuardNone2.30%3.60%
5% or more but Less than 10%1.65%1.65%
10% or more1.40%1.40%


  • As determined by Automated Underwriting System or AUS with DTI ratios up to 65%. Requires a Desktop Underwriter “Approved/Eligible” or Loan Prospector “Accept” findings
  • Manual Underwrite acceptable with DTI ratios up to 41%

Property Type

  • Owner-occupied 1- or 2-unit properties
  • Existing attached and detached single-family residences
  • PUD’s (i.e. Townhomes)
  • Log cabin homes provided Appraisal Report lists other comparable log cabin homes that have recently sold in the area
  • Condominium units are not permitted


  • Owner occupied only
  • All borrowers on the loan must have ownership in and occupy the property
  • Non-married Partners not permitted on the loan request
  • No co-signers permitted

Property Valuation

  • The appraisal order can’t be processed without (1) the Builder/Contractor VA ID number and (2) contractor proposal being obtained
  • Appraiser to provide an “as-is value” and “after-completed value”
  • Value must be up to 100% of the as-is value plus renovation costs
  • Final inspection must be completed by a VA Appraiser once property is 100% complete


  • All loans must be fully documented per Agency Guidelines
  • For Self Employed borrowers, in addition to Agency Guidelines, two years of the tax returns (personal and business) along with a year-to-date profit and loss (unaudited)

Down Payment/Closing Costs

  • 0% down payment required
  • Seller contribution toward buyers closing costs and escrows up to 6% of the purchase price


  • Amortization period: 15, 20, 25, 30-year fixed rate
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