VA Renovation Purchase Loan Calculator
- By Jim Blackburn
- on
- Tags: Calculators, New Construction, Spec Homes
Buy It. Fix It. Love It. All With One VA Loan.
If you’re a veteran looking to purchase a home that needs a little love, the VA Renovation Loan could be your secret weapon. With no down payment required, and the ability to finance both the purchase price and renovation costs, you can unlock serious potential with one streamlined loan.
Let’s explore what that might look like using a sample scenario.
Scenario: Purchase + Renovation
| Input | Value |
|---|---|
| Purchase Price | $300,000 |
| Renovation Costs | $100,000 |
| After Repair Value (ARV) | $300,000 |
| Down Payment | 0% |
| Loan Term | 30 Years |
| Interest Rate | 7.00% |
| Annual Insurance | $2,400 |
| Annual Property Taxes | $3,600 |
| Monthly HOA | $0 |
| First-Time VA Use | Yes |
| Veteran Disabled? | Yes |
Summary of Loan & Construction Costs
| Description | Amount |
|---|---|
| Total Property Costs (incl. 10% reserve) | $410,000 |
| 6 Months Interest Reserves | $14,350 |
| Total Financeable Costs + 4% Closing Estimate | $441,324 |
| Maximum VA Loan Allowed (based on ARV) | $300,000 |
| VA Funding Fee (waived if disabled) | $6,450 |
| Final Loan Amount | $300,000 |
Because the ARV is $300,000, this caps the maximum VA loan—even though total financeable costs are higher. The remaining amount becomes the veteran’s out-of-pocket responsibility.
Estimated Monthly Housing Expense
| Component | Amount |
|---|---|
| Principal & Interest | $1,996 |
| Homeowners Insurance | $200 |
| Property Taxes | $300 |
| Property Tax Discount (if disabled) | -$300 |
| HOA Fees | $0 |
| Total Estimated Monthly Cost | $2,196 |
Estimated Cash Needed at Closing
| Scenario | Out-of-Pocket |
|---|---|
| Without Seller Credit | $150,150 |
| With Seller Credit (2%) | $144,150 |
Note: Some fees (like title, appraisal, survey, prepaid taxes and insurance) cannot be financed and must be paid out-of-pocket or via seller credit. VA restricts what veterans can pay—your loan officer will guide you to stay compliant.
Monthly Income Target to Qualify
| Requirement | Estimate |
|---|---|
| Monthly Income Needed | $4,392 |
VA allows flexible DTI ratios—often 50%+—when backed by strong credit, cash reserves, or other compensating factors. Always check with a licensed VA loan officer to find out what’s possible for your unique situation.
Can You Reuse Your VA Benefits?
Absolutely. Veterans can use their VA benefits again by:
- Using Remaining Entitlement
- Requesting One-Time Restoration
- Refinancing Out of a VA Loan
Every path has different criteria. Be sure to work with a VA specialist to map out your next move.
Start Your VA Buy & Rehab Journey
Now that you’ve crunched the numbers, it’s time to take the next step. Whether you’re buying a fixer-upper or restoring your dream home, this loan gives you the power to do it all with one plan.
Ready to Take Your First Step?
Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.
- 💡 Takes just 5 minutes
- 📊 Tailored results based on your answers
- 🔒 No credit check required
Need a Pre-Approval Letter—Fast?
Buying a home soon? Complete our short form and we’ll connect you with the best loan options for your target property and financial situation—fast.
- 💡 Only 2 minutes to complete
- 📊 Quick turnaround on pre-approval
- 🔒 No credit score impact
Got a Few Questions First?
Let’s talk it through. Book a call and one of our friendly advisors will be in touch to guide you personally.
Schedule a CallImportant Disclaimer
This calculator is for illustrative purposes only and does not constitute financial, legal, or investment advice. Results are based on general assumptions and may not reflect actual performance or eligibility. This is not a loan estimate or approval. Please consult with a licensed mortgage advisor before making financial decisions.
