Can I Buy a Fixer-Upper with a VA Loan?

If you’ve been dreaming about turning a diamond in the rough into your forever home, you might be wondering whether your VA loan benefits can help make that happen. The short answer: yes, but with some conditions. Let’s break down what you can and can’t do when buying a fixer-upper with a VA loan.

Understanding VA Loan Requirements

VA loans are designed to help eligible service members, veterans, and some surviving spouses purchase safe, move-in-ready homes. The Department of Veterans Affairs (VA) has strict Minimum Property Requirements (MPRs) to ensure that homes financed with VA loans are safe, sound, and sanitary.

That means a home with major issues — like a leaking roof, outdated electrical system, or structural damage — likely won’t pass a VA appraisal until those issues are fixed.

Option 1: Buying a Fixer-Upper As-Is (with Caution)

You can buy a home that needs cosmetic updates (like paint, flooring, or fixtures) as long as it still meets VA standards. If the property is livable and the repairs are mainly aesthetic, it can qualify.

Pro tip: Focus on homes that are structurally sound but need updating — think 1970s kitchens, tired bathrooms, or overgrown landscaping. These types of properties offer value potential without jeopardizing your VA approval.

Option 2: The VA Renovation Loan (VA Rehab Loan)

If the home doesn’t meet MPRs but you’re up for a renovation, the VA Renovation Loan (also called the VA Rehab Loan) could be your best path.

This program allows you to roll the cost of approved repairs and upgrades into your VA mortgage. Eligible improvements include:

• Roof repair or replacement

• Electrical or plumbing updates

• Kitchen or bathroom remodels

• Energy-efficient upgrades

• Accessibility modifications

However, luxury upgrades like swimming pools or outdoor kitchens aren’t covered. The work must improve the home’s livability, safety, or efficiency.

Important: You’ll need to work with a VA-approved lender who offers the renovation loan option (not all do) and use licensed contractors for the repairs.

Option 3: Buy and Renovate Separately

Some buyers use their VA loan to purchase the property and then take out a separate renovation loan or line of credit after closing. While this can work, it requires solid budgeting and often more upfront cash. It’s important to plan for temporary housing if major repairs are needed before move-in.

Final Thoughts

Buying a fixer-upper with a VA loan is possible, but it’s not always straightforward. The key is knowing which properties qualify and partnering with a knowledgeable VA-approved lender and experienced real estate agent who understand the process.

If you’re a military buyer or veteran looking for a home in the Fort Liberty, Fayetteville, Hoke, or Harnett County area, I can help you navigate every step — from identifying VA-eligible homes to connecting with trusted lenders who can close in as little as 15 days.

Frequently Asked Questions

1. Can I use a VA loan to buy a home that needs repairs?Yes, as long as the home meets VA’s Minimum Property Requirements or the repairs are completed before closing.

2. What if the home doesn’t pass the VA appraisal?You can negotiate with the seller to make the repairs, switch to a VA Renovation Loan, or choose another property.

3. What types of repairs can be financed through a VA Renovation Loan?Repairs that improve safety, livability, or energy efficiency — like roofing, plumbing, heating, or insulation updates.

4. Can I do the renovation work myself?Generally, no. The VA requires licensed, insured contractors to complete the work.

5. How long does it take to close on a VA loan for a fixer-upper?A typical VA loan closes in 30–45 days, but with my preferred lender, we can often close in as little as 15 days if the property qualifies.

Thinking about a fixer-upper?Let’s find out if it’s the right move for you. Call or text me at 910-916-9315, or visit closewithcassienc.com to start your search today.

Close with Cassie – where service meets strategy.