VA ENERGY EFFICIENT UPGRADE
The VA allows VA borrowers to borrow additional funds to install Energy Efficient Upgrades to the home simultaneously when purchasing a new home with a VA Loan or Refinancing an existing loan. The VA Energy Efficient Upgrade program is available to all Veterans and all qualified VA Service Members. It's purpose is to provide funds that otherwise would not be available to retrofit existing homes and/or construction of a new home with the most up to date energy efficient, cost saving features.
There are specific VA guidelines for utilizing this program and the funds can only be used for installation of certain and specified energy efficient upgrades. The following is a list of some of the features that can be installed as outlined by the VA. In addition to this list, there may be other eligible energy efficient upgrades items that must be approved by the VA Lender and the VA:
- Solar Panels
- Energy efficient heating and cooling systems
- Energy efficient water heater
- Insulation
- Weather stripping and caulking windows and doors
- Storm doors and windows
The VA energy Efficient Upgrade funds are simply added to the over-all VA Loan amounts but must meet certain criteria to do so. The following is a list of questions and answers that will help determine if you are eligible and qualified to take advantage of this program:
VA ENERGY EFFIENT UPGRADE QUESTIONS AND ANSWERS
- QUESTION: Is a Veteran or Service Member required to occupy the property to utilize the VA Energy Efficient Upgrade Program?
ANSWER: Yes. This program was designed to benefit the Veteran and/or Service Member and therefore is required to occupy the residence. - QUESTION: How much money does the VA provide for Energy Efficient Upgrades?
ANSWER: A VA loan can be increased by as much as $3,000 when applied against actual documented costs or up to $6,000 if the increase in the new monthly mortgage payment offsets the expected decrease in utility costs. - QUESTION: On a VA Refinance, what can the maximum loan to value be to add funds for the VA Energy Efficient Upgrade to my new loan amount?
ANSWER: The maximum LTV (Loan-To-Value) when refinancing a VA loan may not exceed 90 percent of the appraised value plus the costs of the improvements. The general rule is you can refinance an existing home loan up to 90 percent of the VA-established reasonable value or to refinance an existing VA loan to reduce the interest rate. Our VA Loan specialists can give you more specific details on adding these funds to a VA Refinance Loans.
