Change Date

September 15, 2004, Change 4

·   This section has been changed to create subsection lettering.

·   Subsection e has been changed to delete references to “CRV.”

a. What is a Supplemental Loan?

A supplemental loan is a loan for the alteration, improvement, or repair of a residential property.  The residential property must

·   secure an existing VA-guaranteed loan, and

·   be owned and occupied by the veteran, or the veteran will reoccupy upon completion of major alterations, repairs, or improvements.

The alterations, improvements, or repairs must

·   be for the purpose of substantially protecting or improving the basic livability or utility of the property, and

·   be restricted primarily to the maintenance, replacement, improvement or acquisition of real property, including fixtures.

Installation of features such as barbecue pits, swimming pools, etc., does not meet this requirement. 

No more than 30% of the loan proceeds may be used for the maintenance, replacement, improvement, repair or acquisition of nonfixtures or quasi-fixtures such as refrigeration, cooking, washing, and heating equipment, and the equipment must be related to or supplement the principal alteration for which the loan is proposed.