Your VA appraisal comes back and there’s a problem.
The roof needs to be replaced.
The HVAC system isn’t working properly.
The septic system needs repairs.
Or the VA appraiser identifies another Minimum Property Requirement, commonly called an MPR, that needs to be corrected before the property is acceptable.
A lot of buyers and real estate agents assume this means the repairs have to be completed before closing.
That’s not always the case.
There are VA renovation programs that may allow certain repairs to be financed into the VA loan and completed after closing.
VA APPRAISAL FLAGGED REPAIRS? LET’S TALK THROUGH YOUR OPTIONS
Send me the appraisal or inspection report. I’ll help you figure out whether your property works as a normal VA loan, an MPR renovation loan, or a full VA renovation loan.
Or call or text me at 937-572-3713.
One newer option from eLEND is specifically designed for relatively limited VA MPR repairs of up to $35,000.
When the repairs go beyond MPR items, including certain structural repairs, I also have full VA renovation options, each with its own limits on the budget and the loan amount.
The important question isn’t simply:
“Will this house pass a VA appraisal?”
It’s:
“What’s wrong with the house, and which VA financing option can solve the problem?”
Found a home that needs repairs? Let's see if a VA renovation loan can make it work. Take the 30-second quiz. No credit pull.
Last reviewed October 2026.
What Is the eLEND VA MPR Renovation Loan?
The eLEND VA MPR Renovation Loan is designed to solve relatively limited property-condition problems that might otherwise prevent a VA loan from closing.
Think about a house that is basically livable but has a major repair issue.
Maybe it needs a new roof.
Maybe the HVAC needs to be replaced.
Maybe the existing septic system needs repairs.
Instead of requiring the seller to complete an eligible repair before closing, the renovation program may allow the cost to be included in the VA financing and the repair completed afterward.
This is not a general remodeling loan.
It’s designed primarily to solve eligible MPR and property-condition problems.
It is a separate, limited product, not a full VA renovation loan. It covers MPR-related repairs only, up to $35,000. The tradeoff is worth it on the right house: lower cost and a faster approval process than a full renovation loan.
How Much Can You Finance for Repairs?
The program allows up to $35,000 in total renovation costs.
However, don’t assume that means you can simply have a $35,000 contractor bid.
The total includes the 15% contingency reserve that eLEND’s program requires and applicable inspection fees.
The program allows financing up to 100% loan-to-value, including eligible renovation costs, subject to VA and lender requirements.
The maximum construction period is three months after closing.
What Repairs Are Allowed?
Examples presented for the program include:
- Roof replacement
- HVAC repair or replacement
- Repair or replacement of an existing septic system
- Repair or replacement of an existing well
- Other eligible non-structural MPR deficiencies identified by the VA appraiser
- Certain eligible non-structural property deficiencies identified during the home inspection
The important distinction is that this program is designed around property deficiencies, not cosmetic upgrades.
STORY TIME
Let’s say you’re a veteran buying a home and everything seems to be going well.
Then the VA appraisal comes back. The roof needs to be replaced. The seller doesn’t have $15,000 sitting around to install a new roof before closing. You don’t want to spend thousands of dollars repairing a house you don’t own yet.
That situation can bring an otherwise good transaction to a standstill.
Instead of immediately giving up on the house, we can look at whether the roof qualifies for an MPR renovation program. If it does, the eligible repair costs may be financed into the VA loan, the transaction can close, and the work can be completed afterward according to the renovation program requirements.
That’s a very different conversation from simply saying: “The house won’t go VA.”
You May Not Need the Final Contractor Bid Before Closing
This is one of the most interesting features of the eLEND program.
According to the program information presented at the Vetted VA Summit, a feasibility study may be used to establish the repair escrow instead of requiring the final contractor bid before closing.
Contractor approval can occur afterward.
That’s potentially a big deal.
One of the problems with renovation financing can be everything that needs to happen before closing. Find the contractor. Get the bid. Collect the contractor documents. Submit everything for approval. Wait. Meanwhile, the seller, Realtors and veteran are wondering when the transaction is going to close.
Moving some of the contractor approval process until after closing may make this program much more practical for relatively straightforward MPR repairs.
How Do the Renovation Draws Work?
The program allows up to three draws per contractor.
An initial advance of up to 50% may be available upon request, subject to program requirements.
The renovation generally needs to be completed within three months of closing.
Again, this is designed for a relatively limited repair project. It isn’t intended for a massive rehabilitation that takes six months or a year to complete.
The House Must Be Habitable
This is one of the most important restrictions.
The home must be habitable at application and remain habitable throughout construction.
So if you’re looking at a severely damaged property that can’t reasonably be occupied, this particular MPR program probably isn’t the right solution.
That doesn’t automatically mean the property can’t be purchased with VA financing. It means we may need to look at a full VA renovation loan instead.
What Isn’t Allowed?
The eLEND MPR renovation program isn’t intended to finance general remodeling or luxury improvements.
Examples identified as ineligible include:
- Kitchen remodels
- Bathroom upgrades
- Cosmetic improvements
- General modernization
- Structural repairs
- Foundation work
- Additions
- Installation of a completely new well where one doesn’t currently exist
- Installation of a completely new septic system where one doesn’t currently exist
- Pools
- Spas
- Recreational or luxury improvements
- DIY or self-help construction
A good way to think about it is:
Fixing an eligible bad roof may work. Remodeling an ugly kitchen because you don’t like the cabinets isn’t what this program is designed for.
Are Structural Repairs Prohibited on VA Loans?
No. This is an important distinction.
Structural repairs are just one of several areas where lender program rules get mistaken for VA rules. I take apart six common myths about VA renovation loan rules here.
The fact that this particular eLEND program doesn’t allow structural repairs does not mean VA prohibits structural renovation loans.
That distinction has its own writeup, with the VA source documents quoted in full: VA renovation loans and structural repairs.
Lenders can have their own program requirements and overlays.
I work with other VA renovation options that may allow structural work, within each program’s own budget and loan limits.
That’s why I don’t like the blanket statement:
“VA won’t allow that.”
Sometimes the more accurate answer is:
“That particular lender won’t allow it.”
Those are two very different things.
MPR Renovation vs. Full VA Renovation
Here’s how I look at these properties.
If you are also weighing the FHA route on the same house, I put the two side by side in VA renovation loan vs FHA 203(k).
Option 1: Normal VA Loan
The property meets VA Minimum Property Requirements or the seller completes the necessary repairs before closing.
Great.
We close it as a regular VA loan.
Option 2: MPR Renovation Loan
The house is habitable. The repair is non-structural. We’re dealing with an eligible MPR/property-condition issue. The entire project fits within the program’s $35,000 maximum, including the contingency and applicable inspection costs.
The eLEND MPR renovation program may be a good fit.
Option 3: Full VA Renovation Loan
Now suppose the house needs significantly more work. Maybe the renovation is $75,000. Maybe it’s $100,000 or more. Maybe structural repairs are involved.
That’s when we need to look at a full VA renovation loan rather than trying to force the property into a smaller MPR repair program.
I have VA renovation options designed for larger and more complicated projects, including programs that may allow structural renovations. If you want the full walkthrough, start with my VA renovation guide.
What About a House That Failed the VA Appraisal?
Don’t automatically assume the deal is dead.
First, find out why it failed.
A minor repair may be something the seller can easily correct. A larger but still relatively contained non-structural MPR issue might fit the eLEND MPR renovation program. A substantial or structural project might require a full VA renovation loan.
The repair determines the strategy.
That’s why I want to see the actual appraisal or inspection report before telling someone that a house won’t work with VA financing.
One thing worth separating first: a repair condition is not the same as a low appraised value. If the number came in under the contract price rather than the house failing on condition, that is a Tidewater and reconsideration of value problem, and it is solved a different way.
Can You Buy It With a VA Loan?
I hear versions of this all the time:
“That house won’t go VA.”
My response is usually:
Why not?
Tell me what’s wrong with it.
There’s an enormous difference between a house needing a roof and a house requiring extensive structural rehabilitation.
If the house is a bank-owned or HUD home listed as-is, I walk through how those purchases work, including who pays for repairs, in buying a foreclosure or fixer-upper with a VA loan.
And now we have different VA financing options for different levels of property problems.
The goal isn’t to force every property into the same loan program. The goal is to find the right VA program for the property.
Frequently Asked Questions
These cover this program. The longer list across every VA renovation program is in my VA renovation loan FAQ.
Can a VA loan close before required repairs are completed?
Potentially. Certain eligible property repairs may be completed after closing through a VA renovation program. The borrower, property and repairs must meet the applicable VA and lender requirements.
How much can I finance with the eLEND MPR renovation program?
The program information presented at the Vetted VA Summit provides for up to $35,000 in total renovation costs, including the required contingency and applicable inspection fees.
Can I use it to replace a bad roof?
Roof replacement was specifically identified as an example of an eligible repair.
Can I replace the HVAC?
HVAC repair or replacement was specifically identified as an eligible use.
Can I repair a septic system or well?
Repair or replacement of an existing septic system or well may be eligible. The program information specifically excludes installing a brand-new septic system or well where one doesn’t already exist.
Are structural repairs allowed?
Not under this particular eLEND MPR renovation program. However, I have other VA renovation options that may allow structural work. Structural renovation is not something you should automatically assume VA prohibits.
Does the contractor have to be approved before closing?
The program allows a feasibility study to be used to establish the repair escrow rather than requiring the final contractor bid before closing. Contractor approval can occur after closing, subject to program requirements.
How long do I have to finish the repairs?
The program provides for a maximum construction period of three months after closing.
Can I do the repairs myself?
No. DIY or self-help construction isn’t permitted under this program.
Can I use this program to remodel the kitchen?
Not simply because you want a nicer kitchen. The program is intended for eligible MPR and property-condition repairs rather than general cosmetic remodeling.
What credit score do I need?
The program information presented at the Vetted VA Summit lists a 580 minimum FICO for all qualifying borrowers.
Can I use this on a duplex?
The program information includes one- and two-unit primary residences.
Are manufactured homes eligible?
Yes. Manufactured homes were included among the eligible property types presented for the program.
BUYING A HOUSE THAT NEEDS REPAIRS? SEND ME THE PROPERTY
One of the biggest misconceptions about VA loans is that veterans can only buy houses in perfect condition. That’s not necessarily true. What matters is what’s wrong with the property and whether we have a VA financing option capable of solving the problem.
If you’re a veteran, Realtor or seller dealing with a property that has VA appraisal or inspection issues, send me what you have. Ideally:
- The property address
- The VA appraisal, if available
- The home inspection, if available
- The list of required repairs
- Any contractor estimates you already have
- Photos of the problem areas, if available
A failed VA appraisal doesn’t always mean the transaction is over. Sometimes it just means we need a different VA loan strategy.
Program availability and guidelines are subject to change. Every borrower, property and renovation scenario must be individually reviewed for VA and lender eligibility.
