Home renovations can be exciting, but figuring out the cost can also be a bit overwhelming and stressful. That’s why it’s best to have experts on your side, both to help you figure out the financials, but also to carry out the renovation tasks for you.
Before committing to a renovation project, in a current home or one yet to be purchased, having an idea of the price tag is important. This way you know what to expect when it comes to paying for the project, but also so that you can choose renovation projects that align with your budget.
In this blog, Gharpedia shares some benefits of VA loans for home renovation, it’s limitation and a simple VA loan calculator, like the one at What’s My Payment can help. Here’s everything else you need to know about the process.
How Does the VA Home Renovation Loan Calculator Work?
One of the benefits of using an online calculator when you are determining how much you can afford for a home renovation loan is that it will do most of the work for you. You can input various pieces of data, which will then be calculated to give you an accurate estimate of what your monthly cost will be for the project.
Such data includes the price of the renovation, the interest rate, the length of the loan, the state where you are taking out the loan, and your current credit score.
Benefits of VA Loans for Home Renovation
There are some significant benefits to choosing a VA home renovation loan. Keep reading to find out what they are.
Borrow on the Completed Value
Most lenders provide loans based on the current value of the property. However, in some cases, with a VA home renovation loan, you can take out funds based on what value the renovation project will add to the home.
An appraiser will help determine what that amount will be after your repairs and improvements are complete, which allows you to take out a loan to pay for the cost before it’s finished.
This is handy if you are looking to buy a house that needs upgrades before it’s ready to live in. Your loan will cover the cost of the house itself, as well as the repairs and improvements you plan to make to it.
Allows You To Purchase a Fixer Upper
If you don’t currently live in the home that you plan to renovate, VA renovation loans can help you get into a house that might otherwise be impractical. Finding a move-in ready home that fits with your budget can sometimes be difficult, so making use of a VA home improvement loan makes it easier to find a property that suits your needs, even if you have to do some work to it before you can live in the house.
Miscellaneous Benefits of VA Home Improvement Loan
- Using a VA home loan to fix up a current home or one you plan to buy in the future carries certain perks that traditional home loans don’t. These include low interest rates, no required down payment and no mortgage insurance.
- When you choose a renovation loan for a home you’re buying that needs work, you also have the advantage of one mortgage payment, instead of having a separate one for your renovations.
Limitation of a VA Home Loan
- Keep in mind that there are some limitations to securing a VA home loan and it might not cover a large amount of renovations, so you may need to look at properties that can be move-in ready with fewer upgrades. Once approved, however, the VA home loan benefits are great and can be the difference between getting a loan and not getting one.
On a final note, now you have all updated about the benefits of VA loans, its limitation and their calculation. Hope this information will help you to get your dream home in any way. But remember, if you’re ready to get started on the approval process, check out the mortgage calculator and create a workable budget so that you know where you’re going, both with your finances and the renovations that you prioritize.
I hope your newly renovated home brings you happiness and good fortune. Best of luck!