Many veterans are aware they may receive less expensive financing by way of VA Home Improvement Loans and Grants. Although the veteran has heard about loans and grants offered by the Federal Government very few are aware of what is necessary to qualify for a VA loan. If you are a veteran or you are an unmarried survivor of a veteran who has passed away you owe it to yourself to review the advantages of attaining home improvement financing through the Veteran’s Affairs program.

The Facts about VA Home Improvement Loans
The VA home improvement loan by definition is not a loan in the truest sense. It is known as a loan guaranty process. This is because the Veteran’s Administration is not a lending institution or banker. However the Veterans Administration pledges the full repayment of the loan originated through a lending source. This guaranty naturally reduces the risk to the lending company. There are lower rates of interest associated with the VA Home Improvement Loan and the loan is available to all veterans of the military.

The amount of money veterans can borrow varies, though you will need to apply for the loan in the state where your home is built. There is no fee or penalty for early termination of the loan through a payoff. The total amount of a VA loan for home improvement cannot exceed 90 percent of the value of your home and there are some additional restrictions placed on the loan amount depending upon where you live.

Increasing a home’s energy efficiency is a popular home improvement, and many veterans can borrow up to $6,000 for just that purpose without having their home’s value assessed beforehand. For loans between $3,001 to $6,000 you may need to show that your utility bills were reduced because of the repairs or improvement you paid for. For energy efficient improvements under $3,000 you generally only have to present the receipt for the item to the loan vendor.

Who is Eligible for a VA Home Improvement Loan?
The first thing to do in order to determine eligibility for VA Home Improvement Loans is to attain an automated certificate. The database that provides certificates in this regard may not be current as it does not always have data on each person that applies. The best thing to do if the database that generates the certificate of eligibility does not have your name on file is to fill out a form referred to as a certificate of eligibility (Form 26-1880). Forms may be obtained by visiting the official website for VA Forms. You may also do this at the eligibility center correspondent with your section or region of the country or through the mail.

Individuals who have credit issues with regard to attaining VA home improvement loans will want to receive credit counseling. Additionally you should be receiving a fairly substantial income as this is crucial in your attaining a VA home improvement loan. The guaranty will only be applicable if you have the revenue in order to support the monthly loan amount. If the preceding stipulation is not in place you will simply not qualify. It is important to “put all your ducks in a row” financially before filling out the certificate of eligibility.

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Using VA Loan Money
Certainly if you qualify for VA home improvement loans and grants you may use the money for any purpose. The lender or the officials at the Veteran’s Affairs office are not particular about the use of the loan or grant. In example, you may use a loan for the purchase of a “fixer upper” and use what remains for improvements. Home improvements such as new windows, new doors, a new roof, a new furnace and even an electronic thermostat are all things that can be paid for with a VA loan.

Further, it should be noted grants are monies that needn’t be paid back. In order to determine if you qualify for grants it is recommended you visit the government site for further information.

If you are a veteran and need money to upgrade or repair your home, then a VA home improvement loan is definitely something you should look into. You may also want to visit the remarkably detailed (and somewhat confusing) VA Home Loan website. As a veteran you gave a lot for your country and being able to get a VA loan is one way your country can thank you. You owe it to yourself to look into a VA loan for home improvement for other needs you may have. Remember: The Department of Veteran Affairs does not actually loan you the money, but they do guarantee the loan. You’ll need to talk to individual credit and lending institutions (or even us an online loan company) like your local bank or credit union to actually apply for the loan itself.