VA Home Improvement Loans
A Two Step Approach
Using the VA Mortgage to perform home improvements can be challenging. Since a fully qualifying VA refinance will only allow cash out up to 90% of the home's value, most of the improvements have to be finished prior to a new VA loan.
Perhaps the best was to accomplish this would be with an FHA home improvement loan which can usually be used to finance improvements over the current appraised value. Then after all the work is finished, we can have the home re-appraised and refinance both the original loan and the new FHA loan at a lower fixed rate VA loan.
You just have to be careful with the type of improvements you do. Generally, cosmetic improvements do little to increase the value of the home, while adding bedrooms, bathrooms, remodeling kitchens and baths go further in increasing the value right away.
Feel free to give us a call for a no obligation, free analysis of your situation. If there is anything that can be done, we can find it.