Can I Buy a Fixer Upper With a VA Loan? | The Borges Real Estate Team

The Borges Real Estate Team

Pasadena • Greater Los Angeles
Veterans United Partner

Can I Buy a Fixer Upper With a VA Loan?

Yes, veterans can buy fixer-uppers with VA loans. The key is understanding VA Minimum Property Requirements (MPRs) and addressing potential appraisal issues proactively-not reactively. Common issues like peeling paint, water heater compliance, and minor drywall damage are fixable in escrow. With the right strategy, VA buyers can even win against cash offers on properties that need work.

The Myth That Holds Veterans Back

Most agents tell VA buyers to avoid fixer-uppers. "Too complicated," they say. "VA appraisers will kill the deal."

They're wrong.

The real problem isn't VA loan requirements-it's that most agents don't understand how VA appraisals work. This knowledge gap steers veterans away from affordable opportunities and into bidding wars on move-in-ready homes where they're competing against conventional and cash buyers.

Here's the truth: With the right approach, veterans can successfully purchase homes that need work-even in competitive multiple-offer situations.

💡 Why This Matters in LA

In Greater Los Angeles, older homes are often the most affordable path to homeownership. Avoiding fixers means missing Craftsman bungalows in Pasadena, mid-century homes in Culver City, and family homes in the San Gabriel Valley-all because of fixable issues.

💬
Not sure if your VA loan can work for the home you're eyeing?

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What VA Appraisers Actually Look For

VA appraisers check for safety and habitability issues called Minimum Property Requirements (MPRs). Understanding these requirements lets you identify potential problems before they derail your purchase.

Common MPR Issues in LA's Older Homes

Issue Why It Matters Fixable in Escrow?
Peeling/chipping paint (pre-1978) Lead paint safety concern ✓ Yes
Water heater not strapped CA seismic safety code ✓ Yes
Holes in drywall Habitability requirement ✓ Yes
Missing handrails Safety requirement ✓ Yes
Broken windows Security/weather protection ✓ Yes
Non-functional HVAC Habitability requirement ✓ Yes
Roof with <2 years life Major system condition ⚠️ Sometimes
Foundation cracks Structural integrity ⚠️ Depends

Notice that most common issues are relatively minor repairs. The problem isn't that VA loans are too strict-it's that unprepared buyers and agents let these small issues kill deals.

The Proactive Approach That Wins

The biggest mistake VA buyers make is waiting for the appraisal to identify problems. By then, you're already in escrow, the seller is nervous, and you're negotiating from a weak position.

✓ The Better Strategy

Identify potential issues upfront, have a candid conversation with the listing agent about how you'll handle them, and demonstrate that your VA offer actually REDUCES risk for the seller-not increases it.

The 5-Step Process

1

Get Pre-Approved (Not Pre-Qualified)

We work with lending partners who provide fully underwritten pre-approval and can close VA loans in as few as 15 days. That speed changes the conversation with sellers.

2

Walk the Property Looking for Red Flags

During your showing, note visible issues: peeling paint, obvious repairs needed, older systems. These are conversation starters, not deal-breakers.

3

Have the Conversation Before Offering

Your agent discusses potential VA appraisal concerns with the listing agent and explains your strategy for handling any issues that arise.

4

Commit to Handling Appraisal Issues

In your offer, commit to addressing VA-specific appraisal findings in escrow. This shifts risk away from the seller.

5

Follow Through

If the appraisal identifies issues, complete the repairs as committed. This builds trust and closes the deal.

Real Results: Winning Against Cash Offers

This isn't theoretical. We've used this exact approach to help VA buyers beat cash and conventional offers in competitive situations.

Marty K. - First-Time VA Buyer
📍 Culver City, 2025
WON
15
Total Offers
Multiple
Cash Offers
Only VA
Our Offer

The Situation: First-time homebuyer using VA loan found a home he loved that had visible issues-peeling paint, water heater concerns, and interior drywall damage.

The Result: We proactively addressed the appraisal concerns with the listing agent and committed to fixing any VA-specific issues in escrow. Marty won against 14 other offers, including several cash buyers.

He went above and beyond to help me navigate all the additional headaches required to get my Veteran loan approved, which made the process even easier for me. If you're looking for a knowledgeable, patient, and trustworthy real estate agent, I highly recommend Justin!

Want the Same Results Marty Got?

I've helped VA buyers win against cash offers. Let me show you how.

81
5-Star Reviews
$200M+
Career Sales
13+
Years Experience
Call or Text (213) 262-5092

Free VA strategy conversation • No pressure

Quincy - Repeat VA Success
📍 Rancho Cucamonga, 2024
WON

Similar Situation: Another VA buyer in a competitive market with a property that needed work. Using the same proactive strategy, we successfully navigated the VA appraisal process and closed the deal.

The Pattern: Two different markets, two different years, same strategy, same result. This approach works.

When a Fixer Won't Work With VA

Honesty matters. Some properties simply aren't suitable for standard VA financing:

⚠️ Properties That Typically Won't Qualify

Major structural damage requiring engineering • No functioning utilities (water, electric, sewer) • Severe health/safety hazards • Properties that are uninhabitable in current condition

For homes needing more than minor repairs, the VA renovation loan may be an option. This specialized product allows veterans to finance both the purchase price and repair costs in a single mortgage.

The VA Renovation Loan Option

If you find a home that needs more extensive work-new roof, major systems, significant repairs-the VA renovation loan (sometimes called VA rehab loan) could be your solution.

How It Works

The VA renovation loan finances both the purchase and repairs in one mortgage. Repairs must be completed by licensed contractors, and the total loan must stay within VA loan limits for your area (over $1.1M in Los Angeles County with full entitlement).

Not all lenders offer VA renovation loans. As a Veterans United partner, we can connect you with lenders who specialize in these products.

Ready to Buy a Fixer With Your VA Loan?

Don't let other agents tell you it can't be done. With $200M+ in career sales, 81 five-star reviews, and Veterans United Partner status, I've helped VA buyers win homes that other agents said were impossible.

Call or Text (213) 262-5092

Text works too • No obligation, no pressure

Frequently Asked Questions

Can I buy a house that needs work with a VA loan?
Yes, veterans can buy houses that need work with VA loans. The key is understanding VA Minimum Property Requirements (MPRs) and addressing potential issues proactively. Common fixable issues include peeling paint, water heater compliance, and minor drywall damage. For more extensive repairs, the VA renovation loan allows financing improvements into the mortgage.
What does the VA appraisal look for in older homes?
VA appraisers check for safety and habitability issues including: peeling or chipping paint (lead concern in pre-1978 homes), water heater strapping/compliance, holes in drywall, missing handrails, broken windows, non-functional HVAC, roof condition, and foundation cracks. Most issues are minor repairs that can be addressed in escrow.
What happens if a VA appraisal finds problems?
If a VA appraisal identifies MPR issues, they must be repaired before the loan can close. Options include: seller makes repairs, buyer commits to fix in escrow (if allowed), or the deal falls through. The proactive approach is identifying likely issues before your offer and discussing solutions with the listing agent upfront.
Can a VA loan compete with cash offers?
Yes, VA loans can win against cash and conventional offers with the right strategy. Key tactics include: getting fully underwritten pre-approval, identifying appraisal concerns before offering, committing to handle VA-specific repairs in escrow, and educating the listing agent that VA loans close at similar rates and timelines as conventional loans.
What is a VA renovation loan?
A VA renovation loan (also called VA rehab loan) allows veterans to finance both the purchase price and repair costs in a single mortgage. This is ideal for homes needing more than minor repairs. The repairs must be completed by licensed contractors, and the total loan amount must stay within VA loan limits for your area.
JB

Justin Borges

Realtor® | Veterans United Preferred Partner | DRE# 01940318

Justin Borges leads The Borges Real Estate Team in Pasadena with $200M+ in career sales, 81 five-star Google reviews, and a 106% average list-to-sale ratio. As a Veterans United Preferred Partner with 13+ years of experience, he specializes in helping military families navigate VA financing in competitive markets-including situations other agents say "can't be done."

Disclaimer: This article provides general information about VA loan requirements and is not intended as financial or legal advice. VA loan guidelines and requirements may change. Consult with a VA-approved lender for advice specific to your situation. Individual results may vary based on property condition, market conditions, and lender requirements. The Borges Real Estate Team is not affiliated with the Department of Veterans Affairs.