VA Renovation Loan Lenders: How to Find One for Your Project
By Carlos Scarpero, NMLS #1674385, VA and Non-QM Mortgage Specialist | Author of ‘VA Loans Made Easy’ | Last reviewed October 2026. Looking for a
Carlos Scarpero, VA Mortgage Specialist, NMLS 1674385
A recent question posed to me was, “Are VA loans harder to close?” It may come as a surprise, but only about 50% of eligible veterans take advantage of VA home loans each year. I discovered this staggering statistic while working on my book, and it made me realize the impact of misinformation surrounding VA loans.
One of the most important points to know is that VA loans actually have extremely flexible underwriting guidelines. The primary goal of the VA is to help lenders approve loans for veterans, making it vital for sellers and realtors to recognize the value of VA offers. Many objections arise based on misunderstandings, particularly around credit score issues. The VA does not have a set minimum credit score, which opens the door for more veterans to qualify.
Here are several common misconceptions about VA loans that need to be addressed:
Length of Closing: A frequent objection is that VA loans take longer to close than conventional loans. This isn’t true; they typically close in about the same timeframe.
VA Appraisal Deadlines: This one is actually an advantage of the VA loan, not a drawback. VA sets an appraisal timeliness standard for every market, built from customary timeframes for comparable conventional appraisals in that same area, and the appraiser must make contact to schedule the appointment within two business days of receiving the assignment. Appraisers who fail to meet VA’s expectations for customer service, accuracy and timeliness can be removed from VA’s fee appraiser panel. Conventional appraisals carry no requirement like that. The standard itself varies by area, so nobody can promise you a specific number of days, but the accountability behind it is real. See the VA Lender’s Handbook, Chapter 10, Topics 6 and 7.
VA Property Condition Standards: Many people fear that the property condition standards for VA loans are excessively stringent. The actual bar is that the home must be safe, structurally sound and sanitary. The handbook is direct about the rest: an appraisal is not a home inspection, and the appraiser should not recommend repairs of cosmetic items, items involving minor deferred maintenance, or normal wear and tear. In practice, only minor items usually need attention, such as adding a handrail.
Termite Inspection Costs: A wood destroying insect report is required on the Notice of Value whenever the property sits in a “very heavy” or “moderate to heavy” zone on the termite infestation probability map, and that covers most of the country, so plan on one in most transactions. It is not a deal killer. It is an inexpensive report, usually under $100, and it is there to protect the veteran from buying a home with hidden termite damage. The guidelines on who pays also changed. Under VA Circular 26-22-11, dated June 15, 2022, VA authorizes veterans to be charged the wood destroying pest inspection fee, so anyone in the deal can cover it: the seller, the realtor, the lender or the veteran. VA still encourages the veteran to negotiate that cost with the seller.
In summary, the VA home loan is an incredible program that offers a multitude of benefits for eligible veterans. It’s essential to educate yourself about the facts surrounding VA loans, especially if you’re a realtor or involved in the home-buying process. This knowledge can help you better serve your clients and assist more veterans in obtaining the financing they deserve.
Have questions about VA home loans? Click here to contact me.
By Carlos Scarpero, NMLS #1674385, VA and Non-QM Mortgage Specialist | Author of ‘VA Loans Made Easy’ | Last reviewed October 2026. Looking for a
New to VA loans? See if you qualify in 30 seconds. No credit pull. The VA Lender’s Handbook is the actual rulebook behind every VA
The short version Most of what you read online about VA renovation loan “rules” is actually describing one lender’s program restrictions, not VA requirements. Finding