Updating a home can be an expensive proposition. Sometimes it is almost impossible to accomplish without some type of loan. If you or a family member happen to be a Veteran, it is possible to qualify for a VA home improvement loan. Taking out and using the equity in ones home can actually help increase the value depending on the improvements made.

Being a Veteran and taking advantage of getting a VA home improvement loan comes with many advantages. For one, most financial institutions do not require cash down payment for VA loans. There can also be the added benefit of no charges if the balance of the loan is paid off early. Additionally, some of the most competitive rates are those offered on VA loans.

Especially for large improvement projects such as roof repair or window replacement, applying for and receiving a VA loan if you qualify can save a bundle of money. These types of loans are guaranteed by the Federal Government to lenders specifically for veterans. The money for the lender is guaranteed, therefore, financial institutions are more apt to loan money.

Many veterans who use the VA Home Loan Guarantee Program to purchase or refinance their homes want to make home improvements. Even if you are buying a pre-existing home, there may be certain improvements you will want to make right away to save on utility bills or make the house more energy-efficient. When you purchase or refinance a home through the VA Home Loan Guarantee Program the VA is willing to finance the cost of your energy-efficient home improvements into your loan, so that you will have money available to make your home improvements now.

The VA will allow you to finance money for energy-efficient home improvements into your new mortgage loan or refinance mortgage loan as long as the money is used to pay for one of the following home improvements:

• Heat pumps
• Thermal or storm doors and windows
• Energy-efficient furnace purchase or efficiency modifications to your existing furnace, this means that you can purchase a new furnace or convert the one you already have to make it more energy-efficient.
• Water heater insulation
• Clock thermostats
• Solar cooling systems
• Solar heating systems
• Insulation in the home, including insulation in the floors, attic, walls, and doors

choicefinance.net contributing writer
VA Loan Officer for Maryland, Virginia, D.C.
Eric Strasser, 301-996-5001

This entry was posted on Monday, August 10th, 2009 at 11:50 am and is filed under 2) General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.