by Gianni Cerretani, Sr. Mortgage Loan Originator, Homebridge Financial Services
Homebridge Financial Services is now offering a program specifically for veterans that allows alteration and repairs to a home with the Veterans Administration home loan. This is a unique loan program that allows qualified veterans to purchase a new home or refinance an existing home with the ability to repair and upgrade the property—all under one loan. This financing allows up to 100% loan-to-value with no private mortgage insurance on an after-repair value appraisal. This means a veteran can finance a home or refinance an existing loan balance which includes the cost of what the repairs and alterations will be. The value will be a subject-to-completion value based on what the home will be worth once the repairs and alterations are completed.
In today’s market, where home inventory is low, this type of loan program will be especially useful in helping veterans take homes that may not be fit their specifications and turn them into the homes of their dreams—without spending cash out of their pocket for the renovations. For a real estate agent, this is a great negotiation tool as they can consider homes for their clients that may have been sitting on the market for a long time due to quality issues of the home. This makes it easier for agents to negotiate and go in with an aggressive offer, knowing they have a loan to support renovations and repairs. This can potentially lead to a huge equity gain once the repairs and alterations are complete, which is nominal for investment purposes.
When it comes to refinancing, this program is also very useful being that the VA recently changed its stance on VA cash-out refinancing, limiting veterans to now only utilize 90% of the equity in their home as opposed to taking out 100%. This unique loan allows veterans to extract the maximum equity out of the home for repairs and upgrades. Many veterans are in a predicament to either sell their existing homes and buy newer homes, or remain in the current homes and upgrade or repair them. This alleviates the hassle of having to go through two transactions and the stress of moving if the only issue with the home is what it would potentially cost to repair and alter the home if you were spending the money out of pocket.
For more information about this loan program, please contact Gianni Cerretani with Homebridge Financial Services, a VA loan specialist and Homes for Heroes affiliate which offers discounts on closing costs for any hero family.
Gianni Cerretani, a/k/a “The Mortgage Godfather,” is a Sr. Mortgage Loan Originator with Homebridge Financial Services. NMLS # 787898