Unlock the Power of Your VA Benefits: Renovation & One-Time Close Construction Loans
For many Veterans, the VA loan benefit is one of the most powerful financial tools available. With no required down payment, no monthly mortgage insurance, and competitive rates, VA loans already stand apart from other programs. But what if you want to improve your current home or even build your dream home from the ground up?
That’s where two specialized programs come in: the VA Renovation Loan and the VA One-Time Close Construction Loan. Both are designed exclusively for qualifying Veterans and active-duty service members, giving you more ways to achieve your housing goals—without the burden of a down payment.
What Is a VA Renovation Loan?
A VA Renovation Loan (sometimes called a VA rehab loan) allows eligible Veterans to buy an existing home and finance improvements—or refinance their current home and roll in renovation costs—all into a single mortgage.
Key Features:
No money down required on purchases (up to VA loan limits).
Finance repairs and upgrades into your mortgage, from new kitchens and bathrooms to roofs, HVAC, plumbing, and more.
Two options available:
Limited Renovation: Up to $75,000 in repairs, for smaller updates (paint, flooring, minor remodels).
Standard Renovation: Starting at $5,000 with no maximum, for larger projects including structural changes, additions, and major remodels.
Owner-occupied only (1–4 unit primary residences, VA-approved condos, and modular homes).
No self-help work—all repairs must be completed by licensed contractors.
For many Veterans, this program is the ideal way to modernize a home without draining cash savings. It’s especially powerful in today’s market where move-in ready homes are scarce.
What Is a VA One-Time Close Construction Loan?
A VA One-Time Close (OTC) Construction Loan allows eligible Veterans to build a brand-new home with no money down—all with the simplicity of one closing and one mortgage.
Key Features:
No down payment required
Loan amounts up to $2,000,000.
One closing covers both the construction phase and the permanent mortgage.
Available for site-built homes, modular homes, barndominiums, and even 2–4 unit primary residences (Veteran must occupy one unit).
Construction term up to 12 months.
Fixed-rate mortgages only (15- or 30-year terms).
Debt-to-income (DTI) ratios up to 55% with qualifying credit.
This program is tailor-made for Veterans who want to stop competing in today’s resale market and instead create a custom-built home that fits their needs, lifestyle, and future.
Which Program Is Right for You?
Choose a VA Renovation Loan if you love your neighborhood or find a home that “almost fits” but needs improvements.
Choose a VA One-Time Close Construction Loan if you’d rather design and build your dream home from the ground up.
Both allow you to maximize your VA benefits with no down payment, while rolling in the costs of construction or renovation.
Why Realtors Should Care
For real estate agents, these programs open the door to more client opportunities:
Help Veterans compete in tight markets by showing them homes that can be renovated to fit their needs.
Expand new construction options to clients who may not have the cash reserves for a down payment.
Position yourself as a strategic advisor who knows how to leverage every VA benefit—not just the standard purchase loan.
In a competitive industry, knowing about VA Renovation and One-Time Close loans gives you a serious edge.
Final Thoughts
At The Lassig Team, we believe in Holistic Mortgage Planning—helping Veterans not just qualify for a loan, but use their VA benefits as a tool to build long-term wealth and security. Whether that means updating your current home, renovating a fixer-upper, or building your dream home from scratch, these VA loan options make it possible with no money down.
Ready to explore your options?
If you’re a Veteran or realtor working with one, connect with our team today to learn how a VA Renovation Loan or VA One-Time Close Construction Loan can fit into your housing and financial strategy.
