A veteran found a home that he loved and planned to use his VA benefit to purchase it. Although he loved the house, he discovered during the home inspection that the furnace was about to fail. He considered backing out of the transaction because he knew that he could not afford the $8,000 or so that it would take to replace the furnace. The seller was also in a situation where they could not pay to fix the furnace.
Using a VA Renovation Loan, I was able to help the veteran finance a new furnace. We added the $8,000 to the loan amount and had a professional install the new furnace after the loan closed. The veteran was still able to purchase the home without a down payment and finance the additional repairs into his loan. In a market where it can often be difficult to get a seller to accept a VA offer, sellers should know that if a problem is discovered during a home inspection, a veteran may be able to finance the repairs with a VA Renovation Loan and fix the problem after the loan is funded.