Refinancing and Home Improvement
In a refinance, where a new VA loan is created, Oregon Veterans may borrow up to 100% of reasonable value. In a refinance where the loan is a VA loan refinancing an existing VA loan (Interest Rate Reduction Refinance or IRRL refinance) a vet may borrow up to 100.5% of the total loan amount. The additional half percent is the funding fee.
It is also possible to capitalize on the VA Home Loan program more than once! Even for veterans who used all of their entitlement, the program is available for a second mortgage of up to 20 percent of the market value of the property.
Veterans who use the VA Home Loan program to purchase or refinance their homes may also want to make certain energy-efficient home improvements. The VA offers a home improvement loan up to $6000 to make the house more energy-efficient When you purchase or refinance a home through the VA Home Loan Guarantee Program, the VA is willing to finance the cost of your energy-efficient home improvements into your loan, so that you will have money available to make your home improvements now. Eligible purposes for home improvement loans includes solar heating and cooling systems, caulking and weather-stripping, furnace efficiency modifications, clock thermostats, water heater insulation, storm windows and doors, heat pumps, vapor barriers, and new or additional ceiling, attic, wall and floor insulation.