The Department of Veterans Affairs released guidelines for 100 percent-financed rehabilitation loans for veterans that were much needed. Until recently, a VA-financed home had to be pretty much perfect, but with the new program, financing can be added to bring homes up to the standards of the VA. The rehab work is limited to repairs and upgrades and must be completed within 90 days. The funds can't be used for structural additions, but buyers could reportedly add a room as long as it doesn't involve removing a load-bearing wall. As with any loan, the appraisal must support the purchase price and value of the proposed improvements.
The loan limits are $35,000 and can include such things as roof repairs, floor repairs, electrical and plumbing repairs and replacements, HVAC repair and replacement, foundation repairs and energy efficiency upgrades. The nice thing is that it can all be one purchase loan instead of a second loan being needed for the improvements.