Killeen Renovation Home Loans

Consider a renovation loan from Capital Home Mortgage Killeen to give your house the makeover it deserves. 

With this financing, you can remodel or revitalize your property and make cosmetic changes like painting and installing new carpets, get rid of old fixtures by replacing them with modern ones (like plumbing), or completely transform one room into something brand-new!

If you’re considering taking out a Killeen renovation loan, here’s everything you need to know.

Types of Renovation Home Loans

There are three main types of loans that can be used for home renovations in Killeen:

• FHA 203(k) Loans

The FHA 203(k) loan is the most popular home renovated loan. This federally-insured loan is the best option for buyers with low credit scores and poor histories.

Capital Home Mortgage generally requires a credit score of at least 500, whereas other lenders may have a higher minimum. To qualify for this loan, you also need to find a property that needs repair or modernization, serving its purpose of financing the purchase price and cost of renovations.

The minimum down payment for this mortgage is 3.5% if you have a 580 or higher credit score. On the other hand, with a credit score between 500 and 579, you need to put down 10%.

Here are the two types of FHA 203(k) loans:

• • • Standard 203(k)

The Standard 203(k) Loan is an excellent option for those looking to make extensive repairs and renovations to their home. These projects comprise but are not restricted to, the following:

1. 1. 1. 1. Structural changes and room additions;
         2. Major landscaping;
         3. The installation of a swimming pool;
         4. New roofs, gutters, and downspouts.
            

There is no cap on the maximum loan amount. However, ensure maintaining an FHA-approved property with repairs and renovations exceeding $35,000.

• • • Limited 203(k)

The Limited 203(k) Loan is best for minor repairs and renovations, which is ideal when you’re on a budget. These projects have a maximum of $35,000 in total costs. They can include the following:

1. 1. 1. 1. Kitchen remodeling (cabinets, appliances)
         2. Bathroom remodeling
         3. Replacement of windows, doors, and siding
         4. Roofing repair or replacement
         5. Basement finishing and remodeling
         6. Deck repair or replacement
         7. Appliance replacement and installation
         8. Painting

• CHOICERenovation Loan

If you’re looking for a way to renovate your home without breaking the bank, a CHOICERenovation Loan may be what you need. This loan offers flexibility and can finance purchase and renovation costs with one convenient loan!

Refinancing is also possible with this loan, provided your renovations don’t exceed 75% of the post-renovation values.

• HomeStyle Loan

The Fannie Mae HomeStyle Loan program provides affordable financing options for homeowners who want to make moderate home changes or repairs. The loan can be used on renovations of primary residences, one-unit second homes, or single-unit investment dwellings. If you’re looking to purchase a manufactured home because they have different criteria they must meet before approval by the bank.

In addition, the Fannie Mae HomeStyle Loan is designed for those who want to do a high-end renovation.

Finance Your Killeen Home Renovation With Capital Home Mortgage

It’s never too late to make your home more appealing. With our Killeen renovation home loans, you can renovate without spending thousands on new construction or upgrading your home.

At Capital Home Mortgage, we offer a wide variety of renovation home loan products to meet your needs, as well as a streamlined process and flexible underwriting. As a direct lender, we make all these decisions in the application, so there are no unnecessary holdups. 

Contact our Renovation Mortgage Team at (800) 850-4255 to get started.