Veterans Housing Guaranteed and Insured Loans

Summary

The Department of Veterans Affairs (VA) may guarantee or insure loans for veterans wishing to make improvements to their homes, including the installation of solar heating systems, solar heating and cooling systems, window and skylight glazing, window insulation, movable insulation panels, portions of a residential structure that serve as solar furnaces, thermal walls, floors, and roofs, caulking and weather-stripping, furnace efficiency modifications, clock thermostats, building insulation, water heater insulation, storm windows and doors, heat pumps, and other energy conservation measures. The VA guarantees 50% for loans up to $45,000. Loans are not to exceed the cost of the energy efficiency improvements. The maximum is $3,000 but may be extended to $6,000 if the projected savings in monthly utility costs from the improvements exceed the monthly payment for principal and interest. The borrower must own and occupy the home, unless they are refinancing a loan from a previously-occupied home. Borrowers may use the loans to refinance existing loans for energy efficiency improvements. To secure the loan, borrowers should obtain a Certificate of Eligibility from their local VA office and present it to the private lender willing to make the loan. Eligibility depends on veteran status (see website for further details). Applicants must have a sufficient income to meet loan repayment terms and must have a satisfactory credit record. Applications are processed by Veterans Benefits Administration Regional Loan Centers in the applicants’ regions. Contacts are listed in Appendix IV of the Veterans Benefit Administration Catalog.