We see it all the time in Sneads Ferry, Hampstead, and Wilmington: The perfect location, the perfect lot, but the wrong house.

Maybe it’s a 1980s time capsule in Northwoods with shag carpet. Maybe it’s a bungalow in Surf City with a great view but an aging roof. Most military buyers walk away because they don't have $30,000 in cash to fix it up after closing.

But what if you could buy that house, finance the renovations into your mortgage, and still put 0% down?

Enter the VA Renovation Loan—the most powerful, underused tool in the military homebuyer's arsenal.

What is a VA Renovation Loan?

Unlike a standard VA loan which requires the home to be "move-in ready," a VA Renovation Loan allows you to purchase a home and finance the cost of repairs into a single 30-year fixed mortgage.

The Math:
Purchase Price: $300,000
Renovation Budget: $50,000
Total Loan Amount: $350,000
Down Payment: $0

The Appraisal: The VA appraiser assesses the home based on its “As-Improved” Value. As long as the home will be worth $350,000 after the work is done, the loan works.

The "Coastal Fixes": What Can You Repair?

You can’t use this loan to add a luxury pool or a detached barndominium. But for the specific issues we face in New Hanover and Onslow counties, it covers exactly what you need:

• Storm Prep: Install hurricane-rated impact windows or storm shutters.
• Crawl Spaces: Finance a full encapsulation and dehumidifier system—critical for our humid climate.
• Flooring: Upgrade to “sand-proof” Luxury Vinyl Plank (LVP).
• The Big Ticket Items: Replace an aging roof, update HVAC, or modernize a dated kitchen.

The Catch: It Requires a Special Team

This is not a standard loan. You cannot walk into any bank and ask for this.

The Lender: Only a fraction of lenders offer this product. In our area, we recommend specialists like Mark Vernon (Rate), Kelly Barnes (Southern Trust), or Sebastian Hajek (CrossCountry), who are experienced with the required paperwork.

The Contractor: You cannot DIY the work. You must use a licensed contractor registered with the VA. They must submit a detailed bid before your loan closes.

The Timeline: Repairs generally need to be completed within 120 days of closing.

Why Do It?

Inventory is tight. Using a VA Renovation Loan lets you stop competing with 20 buyers for the “Pinterest-perfect” house. Instead, you buy the “ugly” house that has been sitting for 60 days, pay less for it, and instantly build equity by modernizing it.

The Bottom Line

Don't let a stained carpet or an old roof scare you away from a dream neighborhood. You have the benefit; you just need the right strategy.

At Aspyre Realty Group, we specialize in spotting “good bones.” We can help you identify properties that are prime candidates for a renovation loan and connect you with the local lenders and contractors who know how to close them.