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Fort Worth Renovation Home Loans

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Home Renovation Loans In Fort Worth

A home renovation loan is a loan that provides funding for upgrading, remodeling, and repairing a home. It is frequently a mortgage with extra funds for house upgrades. There are different use and programs for a home renovation. It could be a purchase loan with additional funding for renovations. Refinance your current mortgage with a cash payoff for home upgrades could be an option. A government loan, such as a Fannie Mae HomeStyle loan, a Freddie Mac Choice Renovation loan, or an FHA 203(k) loan, could be used.

Why a Home Renovation Loan?

A home renovation loan is worth considering if you don’t have enough funds to finance upgrades or repairs. It’s also worth looking into if you have your heart set on a home that has a modest asking price but requires extensive maintenance.

These loans can significantly help homeowners or purchasers who want more control over growing home equity by making significant improvements, not handyman labor. A home remodel loan can be a valuable tool if a project would increase the property’s value after a home improvement.

Types of Home Renovation Loans

  • FannieMae Homestyle Renovation Loan

Borrowers can use the Fannie Mae HomeStyle Renovation loan to either acquire a home that needs repairs or refinance their existing home loan and get money for modifications. The loan proceeds are deposited into a separate escrow account used to pay contractors. Borrowers cannot access such money as they would with a home equity loan or cash-out refinance.

A HomeStyle loan has a single monthly payment; you don’t have to take out a loan for the mortgage and repairs. Borrowers can use it to renovate vacation homes or investment properties. Any renovation or repair is acceptable if it is permanently attached to the property.

  • FreddieMac Choice Renovation Loan

Borrowers can use this loan to buy a home that requires repairs or to refinance their existing home and incorporate the money for renovation in the new loan amount. The loan amount is determined by the home’s “as-completed” value rather than its current value. This loan program allows for repairs up to $200,000 on 1-4 primary residence homes or 1-unit second homes.

  • FHA 203(k) Loan

The FHA 203(k) loan is a government loan that can finance the purchase of a home and renovations under a single mortgage loan. There are two types of FHA 203(k) loans: (a) standard, which allows for repairs over $35,000, and (b) limited or streamlined, designed to finance home improvements under $35,000.

The FHA 203(k) loan covers a wide range of acceptable upgrades, including repairing a roof, flooring, and plumbing, reducing safety and health risks, and upgrading to accommodate a disabled person. However, borrowers cannot use this type of loan for a luxury renovation, such as constructing a backyard swimming pool or hot tub. It is only available for primary residences, not for second or vacation homes.

Apply for a Home Renovation Loan

Due to the current housing situation, It is an excellent time to apply for a home renovation loan. Home Renovation Loans not only improve your borrowing power based on the after-renovation valuation of your property, but they also feature lower interest rates and monthly payments than practically any other option.

Call our home renovation experts at (800) 850-4255 or apply online to get prequalified and preapproved for a home renovation loan in Fort Worth.

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Fort Worth 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 Purchase Transactions, Max Loan Amount is lesser of:

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

On Refinance Transactions, Max Loan Amount 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 including site-condos)

Eligible Properties

(Owner-Occupied Only):

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

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 Full 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.

Fort Worth 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

Fort Worth 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

Not Sure? Take a Look at Other Fort Worth Mortgage Programs

Fort Worth Texas Renovation Mortgage Team

Conor Hayhurst

Managing Director
NMLS 743506

Kelly Cameron

Loan Officer
NMLS 178093

Kelvin Thompson

Loan Officer
NMLS 2050042

Jonathon Cummins

Loan Officer
NMLS 270657

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