How Do I Build a Garage With a VA Loan

By Kay Miranda

Department of Veterans Affairs loans are available to active and retired military personnel and armed services veterans to buy or build a home. Loan providers offer loan provisions as designated by the VA that include less stringent income and credit guidelines. Home improvement loans are also available. They can be used to build a garage as an attachment to your existing property. You are not allowed to borrow more than 90 percent of the existing equity in the house.

Contact local lenders that offer VA loans. Your local VA administrative office can provide you with a list of lenders working with veterans.

Get a estimates from local contractors on the cost of the garage addition.

Determine how much you will need in a loan and how much you can actually get. Since you can't borrow more than 90 percent of the home value, the amount you can borrow might be limited. If your home is worth $100,000 and you still owe $80,000, you can only borrow another $10,000 for the upgrade.

Complete the paperwork with the lender. You must still be a suitable credit risk with VA loan eligibility.

Follow up with required appraisals and paperwork requested by the lender. The lender may ask for a formal property appraisal. Provide all estimates for the garage supplies and work upon request.

Obtain the loan and build the garage. Keep all receipts for the garage in the event you have to show them to the lender.

VA requires that you certify that the upgrade is to a home that you intend to occupy, though occupancy by the veteran's spouse meets the personal occupancy requirement.

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