Can You Use a VA Loan for a Fixer-Upper or New Construction?

VA loans aren't just for move-in-ready homes. You can use VA financing for a home that needs renovation work, or to build a new home from the ground up — both are less commonly used than a standard VA purchase, but very real options.

Fixer-uppers

• A VA renovation loan lets you finance the purchase price and the cost of repairs in a single loan
• The home generally needs to meet the VA's minimum property requirements once repairs are complete, even if it doesn't going in
• Repair funds are typically held in escrow and released as work is completed

New construction

• VA construction loans are less widely offered than VA purchase loans — not every lender or builder works with them
• The builder generally needs to be VA-registered
• The home must still meet VA minimum property requirements once built