VA Renovation Refinance Loan Calculator
- By Jim Blackburn
- on
- Tags: Calculators, New Construction, Spec Homes
Refinance. Renovate. Reclaim Your Space.
The VA Renovation Refinance Loan is one of the most powerful tools available to eligible veterans who want to improve their current home without draining their savings. This unique option allows you to wrap renovation costs into a new VA loan, all while potentially lowering your rate or monthly payment.
Let’s break down a real-world scenario to help you understand how it all works.
Scenario Overview
| Input | Amount |
|---|---|
| Current Loan Balance | $300,000 |
| Estimated Renovation Budget | $300,000 |
| As-Is Home Value | $300,000 |
| After-Repair Value (ARV) | $300,000 |
| Estimated Interest Rate | 7.00% |
| Monthly P&I Payment (New Loan) | $1,996 |
| Monthly Insurance | $200 |
| Monthly Property Taxes | $300 |
| Monthly HOA | $0 |
| Veteran Status | Disabled |
Total Renovation Loan Costs
| Line Item | Cost |
|---|---|
| Property Costs (Payoff + Renovation + 10% contingency) | $630,000 |
| Total Financeable Allowable Costs | $655,200 |
| VA Loan Max Allowed (capped by ARV & county limits) | $300,000 |
| VA Funding Fee | $21,622 |
| Funding Fee Waived (if disabled) | -$21,622 |
| Final Loan Amount | $300,000 |
Note: Because your ARV is limited to $300,000, the full cost can’t be financed through VA—you’ll need to bring the rest to closing.
Monthly Housing Breakdown
| Category | Amount |
|---|---|
| Principal & Interest | $1,996 |
| Homeowners Insurance | $200 |
| Property Taxes | $300 |
| Property Tax Discount (if disabled) | -$300 |
| HOA (paid separately) | $0 |
| Total Monthly Housing Expense | $2,196 |
Cash Needed to Close
| Scenario | Out-of-Pocket |
|---|---|
| Without Lender Credit | $355,200 |
Want to lower your cash-to-close?
- Increase the ARV by improving the property’s appraisal value.
- Compare lender credits at slightly higher interest rates to cover closing costs. This may be smarter if you plan to refinance or sell within 3–5 years.
Monthly Income Needed to Qualify
| Requirement | Estimate |
|---|---|
| Minimum Income Target | $4,392/month |
VA loans are generous with debt-to-income limits—often approving up to or above 50% DTI—as long as you have strong compensating factors like cash reserves, high credit, or residual income.
Can You Use VA Benefits Again?
Absolutely. You can:
- Use remaining entitlement
- Apply for a one-time restoration (if previous loan paid off)
- Restore entitlement by refinancing into a non-VA loan
Your VA entitlement can be used multiple times, as long as you meet occupancy and loan guidelines.
Start Your VA Refinance Renovation Journey
With your estimated monthly expenses and cash to close calculated, you’re now equipped to move forward. Whether you’re restoring a historic gem or upgrading your forever home, a VA renovation refinance could be the smartest way to fund it.
Get Your Custom VA Rehab Refi Quote
Ready to Take Your First Step?
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- 💡 Takes just 5 minutes
- 📊 Tailored results based on your answers
- 🔒 No credit check required
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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.
