Using a VA Loan on a Fixer-Upper: What You Can (and Can’t) Do

Let’s say you find a home in the right location, with the right price… but it needs some work. Can you use your VA loan to buy a fixer-upper?

Yes but only if it meets certain conditions.

 Let’s break down what’s allowed, what’s not, and how to approach homes that aren’t move-in ready.

The VA’s Minimum Property Requirements (MPRs)The VA loan program doesn’t require the home to be fancy but it does require the home to be:

• Safe
• Structurally sound
• Sanitary
• Free from health or safety hazards

That means:

• No exposed electrical
• No broken windows or stairs
• Roof and foundation must be intact
• Plumbing, heating, and water must be functional

Cosmetic issues are fine.

Ugly paint? Dated cabinets? Old flooring? No problem.

But if the house has major deferred maintenance, it may not pass the VA appraisal as-is.

Can You Buy a Home That Needs Work?

Yes, if:

• The home meets minimum standards
• Or repairs can be completed before closing
• Or you use a VA renovation loan

In some cases, the seller agrees to fix the issues during escrow so the loan can move forward.

This happens all the time, I help structure these deals with clear timelines and backup plans.

What You Can’t Do (With a Standard VA Loan)

• You can’t finance the cost of renovations into the loan (like a 203k or renovation loan)
• You can’t close on a property that doesn’t meet VA standards unless repairs are already complete
• You can’t do a “fix it after closing” agreement, the VA doesn’t allow that

So if the home has serious issues, you’ll either need:

1. The seller or buyer to complete repairs before close, or
2. To look at a different loan type that supports renovation financing

What About VA Rehab Loans?

Technically, there is a VA Renovation Loan program but full disclosure:

• It’s not widely available
• Few lenders actually offer it
• It often takes longer and has more moving parts than buyers want to deal with

That said, if you’re dead set on renovating with a VA loan, we can look at available programs and see if it makes sense for your situation.

How to Shop Smarter

If you're open to a “light fixer,” here’s how I help buyers stay out of trouble:

• I flag anything that could be a VA red flag (safety, soundness, sanitary)
• I prep your agent so they know what’s financeable
• I run scenarios for seller-paid repairs up front 

Want to buy a home that needs some work? It’s possible. You just need the right structure, the right timing, and the right loan.

Let’s figure out what’ll work for your budget and comfort level.