Beaumont Renovation Home Loans

Home renovations can be expensive, depending on the extent. It can be as minor as repairing the roof and other broken parts within the house or a significant renovation like home remodeling, plumbing replacement, flooring, and many more. Even if you have the money to pay for the renovation outright, using your savings to fund it makes little sense, especially since you have equity in the property in question. 

So use it to take out a home renovation loan instead. 

Capital Home Mortgage offers renovation loans from FHA, Fannie Mae, and Freddie Mac. Contact our Beaumont loan specialists to learn more about these loan products for renovating homes.

Our Renovation Home Loans in Beaumont

Before you apply for a home renovation loan, it’s best to speak with a local contractor to conduct a visual inspection and estimate the renovation costs. We would appreciate it if you have a figure in mind so that we can work towards a beneficial renovation loan agreement. 

Moreover, ask the contractor if they’re accredited and licensed to perform renovations. Contractor accreditation is often required in government-backed renovation loans. If the renovation is DIY, giving us an estimate of the total project costs would be highly appreciated.

• HomeStyle Renovation Loan

The HomeStyle Renovation Loan is from Fannie Mae. You can apply for this loan if you intend to buy an old house and renovate it. This loan will cover the purchase price of the old house and the funds for renovation. However, part of Fannie Mae’s requirements is coordinating with an approved contractor to perform the renovation. Once you get this loan, you cannot encash the proceeds intended for renovations.

Fannie Mae is strict about this issue. The contractor must submit the renovation plan to the bank for a draw. Once the renovation project is complete, the bank will ensure that the procedures have been followed. Assuming everything is fine, the bank will pay the contractor. 

• CHOICERenovation Loan

This renovation loan from Freddie Mac is similar to Fannie Mae, but it has prioritized applicants. From the name itself, a CHOICERenovation loan prioritizes first-time home buyers, rural home buyers, senior homeowners, and multigenerational households. However, you may still have a chance for this loan product. The persons mentioned previously only have a preference, but that doesn’t mean they’re automatically approved. With a CHOICERenovation loan, you can borrow up to 75% of the home value, not total expenses.

• FHA 203(k) Loans

FHA loans are suitable for individuals with less-than-perfect credit scores. The FHA backs these loans to reduce the risk of future default to lenders. An FHA 203(k) loan can be a standard 203(k) or limited 203(k). The traditional 203(k) can cover costly renovations but at least $5,000. On the contrary, minor renovations go to the limited 203(k) with a maximum value of $35,000.

Finance Your Home Renovation with Capital Home Mortgage

At Capital Home Mortgage, we can help you finance your home renovation in Beaumont. Our direct mortgage lending process allows us to cater to applicants’ needs by managing all applications directly. Get started today by calling us at (409) 242-5530.