How to Get a VA Renovation Loan in Texas: Rates, Limits, and Guidelines

Buying a home that needs repairs can feel overwhelming, especially if you’re a veteran who wants to keep costs low. Fortunately, the VA renovation loan makes it possible to buy or refinance a property in Texas and include the cost of repairs or upgrades in the same mortgage. This program, backed by the U.S. Department of Veterans Affairs, allows eligible service members, veterans, and surviving spouses to turn a fixer-upper into a dream home without needing separate financing.

In this guide, we’ll cover how VA renovation loans work, the rates, limits, and requirements you should know, and why this option may be the right fit for Texas veterans.

What Is a VA Renovation Loan?

A VA renovation loan—sometimes called a VA rehab loan—combines the purchase price of a home with approved renovation costs into a single loan. Instead of taking out a separate construction or personal loan, you can finance everything under your VA mortgage.

This program is designed to make homes more livable. That means improvements such as roofing, plumbing, HVAC, electrical, or energy efficiency upgrades are allowed. Luxury add-ons, like swimming pools or elaborate landscaping, do not qualify.

VA Renovation Loan Requirements

To qualify, you’ll need to meet the basic VA renovation loan requirements:

• Eligibility: You must be an active-duty service member, veteran, or surviving spouse with a valid Certificate of Eligibility (COE).
  
  
• Primary residence: The property must be your main home, not an investment or vacation property.
  
  
• Contractors: All repairs or improvements must be completed by VA-approved, licensed contractors. DIY projects aren’t allowed.
  
  
• Timeline: Renovations typically need to be completed within 60 to 120 days after closing.
  
  
• Appraisal: The home is appraised based on the expected “as-completed” value after renovations.
  

These VA renovation loan guidelines help ensure the program stays focused on safety, livability, and affordability for veterans.

VA Renovation Loan Limits in Texas

The maximum amount you can borrow depends on the after-renovation appraised value of the home. For many borrowers, the limit falls around $50,000 in renovations or up to 15% of the home’s completed value, depending on lender rules.

Texas veterans with full VA entitlement have no hard cap on loan amounts, as long as they qualify with income and credit. However, if you’ve already used part of your entitlement, county-specific VA loan limits may apply.

VA Renovation Loan Rates

One of the biggest advantages of this program is its affordability. Current VA renovation loan rates are often lower than conventional rehab loans or personal loans. Because the VA guarantees a portion of the loan, lenders can offer competitive rates without requiring mortgage insurance.

However, rates can vary by lender, your credit profile, and the size of the renovation project. Comparing offers from multiple VA renovation loan lenders will help you find the best deal.

Finding VA Renovation Loan Lenders

Not all VA-approved lenders offer renovation loans, which can make the search more challenging. If you’re looking for VA renovation loan lenders near me, focus on lenders with a track record in Texas who understand both VA and renovation financing.

Two well-known providers that sometimes offer these loans are USAA VA renovation loan and VA renovation loan Navy Federal, though availability can change. Many local Texas mortgage companies also specialize in VA lending and may provide more flexible service.

Why Some Say VA Renovation Loan Suspended

You may have heard the term VA renovation loan suspended when researching. That’s because, at times, some national lenders pause offering the program due to complexities with contractors, appraisals, or loan processing. The VA hasn’t eliminated the option, but availability depends on lender participation. If one lender isn’t offering it, check with another that actively serves Texas veterans.

What Renovations Are Allowed?

Eligible renovations generally focus on health, safety, and energy efficiency. Examples include:

• Roof replacement or repair
  
  
• HVAC, plumbing, and electrical upgrades
  
  
• Flooring and insulation improvements
  
  
• Accessibility modifications (ramps, widened doors)
  
  
• Painting and interior updates
  
  
• Exterior safety improvements like decks or porches
  

Luxury projects, structural expansions, or upgrades not tied to livability won’t qualify.

Step-by-Step Process to Get a VA Renovation Loan in Texas

1. Confirm Eligibility – Get your Certificate of Eligibility (COE) from the VA.
   
   
2. Choose a Lender – Shop for a lender that actively provides VA renovation loans in Texas.
   
   
3. Get Contractor Bids – Work with VA-approved contractors to submit itemized renovation plans.
   
   
4. Property Appraisal – The VA appraiser will assess the “as-completed” value of the home.
   
   
5. Close on the Loan – Once approved, closing combines your home purchase or refinance with renovation financing.
   
   
6. Begin Renovations – Contractors complete work within the allowed timeframe. Lenders release funds in stages (draws) as progress is made.
   

Pros and Cons of VA Renovation Loans

Pros

• No down payment required
  
  
• Combines purchase and renovation into one loan
  
  
• Competitive interest rates
  
  
• No mortgage insurance premiums
  
  
• Designed for veterans and service members
  

Cons

• Not all lenders offer them
  
  
• Renovations must be completed quickly
  
  
• VA-approved contractors required
  
  
• Limited to necessary, not luxury, improvements

Alternatives if a VA Renovation Loan Isn’t Available

If you cannot find a lender or the program doesn’t fit your needs, alternatives include:

• VA Cash-Out Refinance – Tap into home equity for renovations.
  
  
• FHA 203(k) Loan – Combines purchase and rehab under FHA guidelines.
  
  
• Conventional Renovation Loans – Like Fannie Mae’s HomeStyle loan.
  
  
• Personal or Home Equity Loans – Useful for smaller projects if you already own the home.

Should You Consider a VA Renovation Loan in Texas?

If you’ve found a home that needs work—or you already own a property that could benefit from upgrades—the VA renovation loan is worth exploring. It allows veterans to buy affordable properties, improve them, and roll the costs into a single, low-rate VA mortgage.

While lender availability can be limited, the benefits of combining purchase and renovation costs make this program highly valuable for Texas veterans.

At Dylken Home Loans, we specialize in helping Texas service members and veterans navigate VA mortgage options, including renovation financing. Whether you’re buying or refinancing, our team can guide you through the process and connect you with trusted lenders and contractors.

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