Capital Home Mortgage Houston
Houston Renovation Home Loans
Houston Renovation Mortgage Lender
Houston Home Renovation Loan
Need a loan to fix up your home? A home renovation loan is a type of loan product specifically intended to finance the repair or renovation of an existing property.
At Capital Home Mortgage, we offer a variety of home renovation loans in Houston, including FHA 203(k) loans, Freddie Mac CHOICERenovation Loans, and Fannie Mae HomeStyle Loans.
Here’s what you need to know about obtaining a Houston home renovation loan.
FHA 203(k) Loans
The FHA 203(k) loan program encourages low- to moderate-income families to buy and renovate old homes. In Texas, you can apply for an FHA 203(k) and purchase a home at a lower price. You can also use this loan for home improvements, remodeling for particular purposes, or adding more rooms.
There are two types of FHA 203(k) loans:
The standard 203(k) loan is for extensive renovation work. It involves significant repairs and changes in the structure of the house. There is no cap for the maximum loan amount, but the property value must be within FHA limits, with repairs and renovations that exceed $35,000.
You can use the loan proceeds for plumbing and flooring repairs, installation of heat and air-conditioning systems, and renovation projects for seniors and disabled persons. However, luxurious renovations are not included in the allowed renovation projects.
Homebuyers and homeowners can finance the cost of both the purchase (or refinancing) of a home and its renovation with a single mortgage, or they can fund the renovation of their current home using Section 203(k) insurance.
If your home doesn’t require much renovation, you can choose the limited 203(k) loan for minimal repairs. Getting a limited 203(k) is more accessible, but the loan cap is only up to $35,000, and the renovation cost must be at least $5,000.
We recommend talking to your contractor first to determine the scope of the renovation work. Our experts at Capital Home Mortgage will then help you assess if it’s qualified for a limited 203(k) or the standard 203(k).
The Freddie Mac CHOICERenovation loan is a counterpart of an FHA 203(k) for Freddie Mac borrowers. First-time homebuyers can get a CHOICERenovation loan to buy a home and pay for its improvements. It’s a consolidated mortgage loan since the proceeds can be used to pay the seller with the excess amount for repairs.
The Fannie Mae HomeStyle Loan program can cover renovation costs of primary residences, one-unit second homes, and single-unit investment dwellings. However, renovations for manufactured homes are only up to 50% of the “as-completed” appraised value of the property.
Down payment for this loan program can be as low as 3%, but it can reach up to 25% for a three- or four-unit principal residence.
Apply For A Renovation Loan In Houston
Our mortgage experts will help you explore the right loan for your needs. Capital Home Mortgage is a direct lender, meaning we make all the decisions in the application process. This allows us to offer a streamlined process, flexible underwriting, and competitive interest rates.
Talk to our mortgage experts today about your home renovation loan in Houston. Call (800) 850-4255 to get started.
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Houston 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)
- 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.
Houston Fannie Mae Homestyle Loan
- Simple – Flexible – Affordable
- Purchase or Refinance
- Primary, Secondary, or Investment Properties
- As Completed Values
- 95% Primary LTV
- 97% 1st time Buyers LTV
- 90% Second Home LTV
- 85% Investment Property LTV
- Up to 25K Project Costs Including Fees
- Project is Single Draw
- Alternative to Escrow Holdbacks
- Appraiser to Perform Final
- Install Pool, Pool Decking, Fencing
- Material Draw Available
- Update for Kitchen and Baths,
- Install Energy Efficient Updates
- Deferred Maintenance
Houston 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