VA LOAN CAPTAIN BLOG & Learning Center

Using your VA Loan for Home Improvement

By: Grant Moon 08/08/12 09:33 am

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Using a VA loan can be beneficial for property owners who need to modernize, upgrade, renovate, or refurbish their home. Home improvement can be a big expenditure and not everyone has the available cash to pay for the project outright. Having the ability to finance some or all of the property improvement at a low interest rate could be an attractive proposition.

Utilizing the equity in your property is a common means of financing an improvement for most homeowners. With historically low interest rates financing your project with home equity in some occasions will prove to be the most attractive financing terms.  This is especially true when you have a high cost improvement such as, a new roof, windows, siding, or a total renovation of your home. Banks make fees on loans therefore the larger the loan the lower the fixed fees as a cost percentage of your total loan amount.

If you are currently paying a higher interest rate then what is available, you have the option of lowering your interest rate while and take out equity through a VA Loan Cash out Refinance. The cash out refinance allows the owner to “cash out” equity up to 90% of the appraised value. For example, John Smith has a home worth $100K and has only $50,000 left to pay on his principle then he can take out $40,000 to pay for a renovation as $50,000 plus $40,000 equals $90,000 which is 90% of $100,000 or the appraised value

Additionally, you can use your VA Loan for energy efficient improvements such as windows that reduce your heating bill or moving to a more efficient heating system. The VA allows for up to $3,000 of the documented cost, or $6,000 if the projected reduction in your utilities bills off-sets the cost of your increased mortgage payment.

VA Loan Captain is a Service Disabled Veteran Owned Small Business that assists veterans and servicemembers  purchase their dream homes or refinance their existing home a low interest rate. As a company with purpose beyond profits $200 is provided for every loan closed to a veteran focused charity through our Veterans-Pay-It-Forward Program. For more information or to get a no-cost or obligation consultation please visit us at


VA Loan Captain, Inc. is a service disabled veteran owned small business registered in the state of New Jersey.® is a diversified housing, benefits, education, and services platform assisting current and former servicemembers to receive the information, value, and services that they deserve.® has partnerships with veteran focused non-profits and charities that provide services to veterans but is not affiliated with the VA or any government agency.

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