Capital Home Mortgage Austin

Austin Renovation Home Loans

Austin Renovation Mortgage Lender

Renovation Home Loans In Austin

Many new homes are being built around the country, and most sell quickly. Knowing homebuyers can still buy a fixer-upper is reassuring, given how “hot” the property market has recently been.

Home buyers and sellers might benefit from home improvement financing in Austin, Texas. They give homebuyers the option and freedom to buy a house, then make changes to it to suit their preferences. They also let the seller sell the home as-is, sparing them the trouble of performing pointless improvements and repairs before selling.

Types of Home Renovation Loan Programs

  • FHA 203k Home Loans

The FHA 203(k) home loan program enables customers considering buying a fixer-upper that needs numerous repairs and intensive rehabilitation work to combine the cost of the house and these projects into one mortgage. There are two types of 203k loans, (a) standard and (b) limited.

        • Standard 203(k) Loan

You must choose this loan if your home modifications necessitate engineering or architectural drawings and inspections. Additionally, the repairs’ estimated amount should be greater than $35,000. This home loan program essentially pays for the complete demolition and rebuilding of your home. You must keep the original house’s foundation as the requirement for this type of loan.

        • Limited 203(k) Loan

The streamlined or limited 203(k) loan is intended to finance renovations worth no more than $35,000. It’s also crucial to remember that only modifications not requiring engineering or architectural drawings are covered under this mortgage. This loan pays for minor repairs, roof and gutter replacement, interior or exterior painting, and patio installation.

  • FannieMae Homestyle

A government-backed mortgage called the Fannie Mae HomeStyle Renovation loan offers minor home renovation and maintenance. The loan may take the form of a mortgage to acquire a property or refinance an existing mortgage with additional funds for improvements.

The amount of a Fannie Mae HomeStyle loan is limited to 75% of the property’s appraised value “as-completed,” rather than the property’s current, pre-renovation value. It is only offered through Fannie Mae-approved lenders. This benefits homeowners who don’t have much home equity to draw upon for loans.

Borrowers may use this loan to purchase an investment property, second house, or principal residence. It has fixed or adjustable interest rates and 15- or 30-year periods. The cash payment for renovations is retained in escrow and must be utilized only for the renovation.

Additionally, any renovation must permanently be affixed to the property and increase its worth. The lender must keep track of the job, have all the supporting documentation, and finish the improvements within a year of receiving the mortgage.

  • FreddieMac ChoiceRenovation

With the help of CHOICERenovation, lenders can offer Freddie Mac loans where borrowers use the loan proceeds to pay for improvements. It fills a void for lenders looking for a credible, traditional product to support renovation finance and give borrowers affordable options.

Borrowers can purchase fixer-uppers through CHOICERenovation, or current homeowners can rehabilitate their properties. This is especially helpful for properties damaged by natural catastrophes and the aging housing market.

Up to a maximum LTV of 95%, borrowers may utilize the mortgage funds to pay for renovations and enhancements. Additionally, the CHOICERenovation program permits specially accredited seller-servicers to provide mortgages before the renovation modifications are finished.

Apply for a Home Renovation Loan in Austin

Capital Home Mortgage will assist you with your Austin home renovation loan application. From conventional and government-backed loans to the rehabilitation mentioned above, we originate many mortgage choices.

As a direct mortgage lender in Texas, we have complete control over the entire process, from application to closing. We’re committed to giving our clients a more straightforward and enjoyable experience with home loans!

For more details on our Austin Renovation Home Loans, contact one of our renovation mortgage specialists at (800) 960-4565.

Why Austin is Choosing Capital Home Mortgage...

Close On Time with True Approval

Control of the Loan from the Application to Funding.

Great Austin Rates / Low Fees

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7  Day a Week Support from Application to Final Mortgage Payment. 

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Austin FHA Renovation 203K Loan

FHA offers a rehabilitation loan that can be used either with a purchase of a new home or as part of a refinance.  The FHA 203K Home loan is offered to allow homeowners to purchase less than perfect homes or to bring the current home up to date with improvements.

Purchase and Refinance

On Purchases, Max Loan is lesser of:

  • Adjusted As-is Value plus allowable financeable rehabilitation cost plus fees/reserves; or 110% of After-Improved Value (100% for condominiums)

On Refinances, Max Loan is lesser of:

  • Existing Debt plus financeable Rehabilitation Cost plus Prepaid and Closing Cost; or 97.75% multiplied by lesser of: As-is value plus rehabilitation cost; • 110% of After-Improved Value (100% for condominiums)

Eligible Properties

(Owner-Occupied Only):

  • PUDs (Planned Unit Developments)
  • 1 to 4 Units
  • Doublewide Manufactured Home
  • Condominium (in FHA Approved Projects)

Mixed Use Properties Allowed:

  • A minimum of 51% of the entire building’s square footage must be used for residential use.

FHA 203K Full Rehab

  • Full 203K – allows improvements to exceed the 35K cap on renovations.  The improvements are not limited cosmetic, but can be include major structural including an addition. This can be combined with a purchase or with a fully documented refinance. 

FHA 203K Streamline Rehab

  • Streamline 203K – allows for up to 35K of improvements to be financed into the loan.   This can be combined with a purchase or with a fully documented refinance. The improvements are typically cosmetic, but can be limited structural as long as the improvements are not for an addition.
Renovation 203K Home Lender

Benefits:

  • Simple – Flexible – Affordable
  • Purchase or Refinance
  • Primary, Secondary, or Investment Properties
  • As Completed Values 

Homestyle Standard

  • 95% Primary LTV 
  • 97% 1st time Buyers LTV
  • 90% Second Home LTV
  • 85% Investment Property LTV

Homestyle Limited

  • Up to 25K Project Costs Including Fees
  • Project is Single Draw
  • Alternative to Escrow Holdbacks
  • Appraiser to Perform Final 

Homestyle Pools

  • Install Pool, Pool Decking, Fencing
  • Material Draw Available 

Homestyle Maunfactured

  • Update for Kitchen and Baths,
  • Install Energy Efficient Updates
  • Deferred Maintenance

Austin Fannie Mae Homestyle Loan

Benefits:

  • Simple – Flexible – Affordable
  • Purchase or Refinance
  • Primary, Secondary, or Investment Properties
  • As Completed Values 

Homestyle Standard

  • 95% Primary LTV 
  • 97% 1st time Buyers LTV
  • 90% Second Home LTV
  • 85% Investment Property LTV

Homestyle Limited

  • Up to 25K Project Costs Including Fees
  • Project is Single Draw
  • Alternative to Escrow Holdbacks
  • Appraiser to Perform Final 

Homestyle Pools

  • Install Pool, Pool Decking, Fencing
  • Material Draw Available 

Homestyle Maunfactured

  • Update for Kitchen and Baths,
  • Install Energy Efficient Updates
  • Deferred Maintenance
Renovation Fannie Mae Homestyle Lender

Benefits:

  • Simple – Flexible – Affordable
  • Purchase or Refinance
  • Primary, Secondary, or Investment Properties
  • As Completed Values 

Homestyle Standard

  • 95% Primary LTV 
  • 97% 1st time Buyers LTV
  • 90% Second Home LTV
  • 85% Investment Property LTV

Homestyle Limited

  • Up to 25K Project Costs Including Fees
  • Project is Single Draw
  • Alternative to Escrow Holdbacks
  • Appraiser to Perform Final 

Homestyle Pools

  • Install Pool, Pool Decking, Fencing
  • Material Draw Available 

Homestyle Maunfactured

  • Update for Kitchen and Baths,
  • Install Energy Efficient Updates
  • Deferred Maintenance

Austin Freddie Mac Choice Renovation Loan

CHOICERenovation can assist first time homebuyers who want to fix up a more affordable home, current homeowners who are looking to age in place by making needed repairs and improvements, and multi-generational families who need a more customized living space.

  • Up to 97% LTV of the “as-completed” value
  • 85% LTV on a 1-unit investment property;  90% on a 1-unit second home
  • Credit Scores down to 620
  • Owner-occupied 1–4 unit condos, PUDs, 1-unit second homes, and investment properties are all eligible
  • Luxury renovations and improvements are eligible, like adding a pool or outdoor living area

As inventory becomes increasingly scarce, and home prices remain high, homebuyers are increasingly looking at older, more affordable homes that can be fixed up or customized to their liking. CHOICE Renovation give buyers this opportunity topurchas an older home and make it their own

Renovation Freddie Mac Choice Home Lender

CHOICERenovation can assist first time homebuyers who want to fix up a more affordable home, current homeowners who are looking to age in place by making needed repairs and improvements, and multi-generational families who need a more customized living space.

  • Up to 97% LTV of the “as-completed” value
  • 85% LTV on a 1-unit investment property;  90% on a 1-unit second home
  • Credit Scores down to 620
  • Owner-occupied 1–4 unit condos, PUDs, 1-unit second homes, and investment properties are all eligible
  • Luxury renovations and improvements are eligible, like adding a pool or outdoor living area

As inventory becomes increasingly scarce, and home prices remain high, homebuyers are increasingly looking at older, more affordable homes that can be fixed up or customized to their liking. CHOICE Renovation give buyers this opportunity topurchas an older home and make it their own

Not Sure? Take a Look at Other Austin Mortgage Programs

Austin Renovation Mortgage Team

Ron Ireland

Branch Manager
NMLS 328363

Doug Harris

Loan Officer
NMLS 2152628

Matt Williams

Loan Officer
NMLS 1945867

Chris Erwin

Loan Officer
NMLS 914064

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