Veteran Home Improvement Loans Offered in Wisconsin

A Home Buying Article Contributed by Robert Scalia

Just What Exactly is the the Home Improvement Loan Program?

The Hoe Improvement Loan Program is one that can be used for a variety of additions, construction, repairs and alterations of a veteran's principal residence, including both his home and his garage.

While these loans can be used to cover almost any type of renovation possible, it may not and in fact cannot be used to purchase personal property, including furniture and certain types of appliances. In addition to this basic requirement, all HILP loans must be secured.

Keep in mind that loans of $3,000 or less may be secured by a guarantor. But once larger loans are demanded, they will require a mortgage on the property to be improved. That mortgage must belong to the veteran's primary residence.

All interested veteran applicants must have at least 10 percent equity in the property they are looking to improve. This means that the value of the property must be at least 10 percent higher than the sum of the existing mortgages, including the HILP mortgages. It is important to remember that if you are a veteran, you can actually have more than one HILP, provided you have sufficient equity and can repay multiple loans.

Just Who is Eligible for These Home Improvement Loans?

In order to benefit from the services offered by the Wisconsin Department of Veterans Affairs (WDVA), veterans must meet military service requirements and state residency requirements exactly as they are set by the State Legislature.

Interested veterans should also keep in mind that deceased veterans who were eligible for WDVA home loans may also qualify for this new home improvement loan. It is also important to point out that there are no longer maximum income limits on WDVA home loans. That means that eligible veterans may have both a WDVA Primary Mortgage Home Loan and a Home Improvement Loan.

And Just What are the Various Home Improvement Loans Available to Veterans Who Live in Wisconsin?

Once deemed eligible, any interested veteran may be allowed to borrow up to $25,000 with up to 15 years to repay. Available terms and rates are listed below.

Secured mortgages with loan amounts of up to $25,000 will be available for five-year terms at a rate of five per cent. The estimated monthly payment for this loan will be about $472.

Ten-year terms at a rate pf 5.35 per cent will also be available for veterans looking to borrow between $5,000 and $25,000. They can then expect to pay 270 dollars every month.Similarly, other 15-year terms are also available at a 5.65 per cent interest, which means the veteran will have to pay out about 206 dollars a month.

Remember, in order to calculate the value of the property, the WDVA normally uses the equalized assessed or fair market value (which can be found on the property tax statement) plus 1/2 the cost of the home improvements. An approved real estate appraisal may be substituted for the assessed or fair market value listed on the property tax statement at the owner's own expense.