Midland Renovation Home Loans

In a competitive housing market, buyers may need more affordable options. If you’ve found the perfect Midland neighborhood but still can’t find a suitable property, why not purchase a fixer-upper and renovate it to fit your needs and lifestyle?

Home renovation loans are an excellent way to finance home improvement projects or purchase a home that needs work. You can use it to buy (or refinance) a house and cover the cost of the necessary repairs with a single mortgage. These loans typically appraise the property based on the estimated post-renovation value rather than its current value, giving you more borrowing power.

Types of Home Renovation Loans

Midland homebuyers have several home renovation loans depending on their needs and goals. If you’re interested in a renovation loan, the following are your top 3 options:

     1. FHA 203(k) Rehab Loans

FHA 203(k) loans can be used to finance the purchase or refinance of a primary residence and the cost of repairs or improvements to the property. However, you cannot use the proceeds of these loans to fund luxury amenities such as a swimming pool or an outdoor kitchen.

The 203(k) loan comes in two varieties: the streamlined and full versions, also known as the standard 203(k) mortgage. 

A Streamline 203(k) mortgage will finance the purchase of your new home and provide you with up to $35,000 for cosmetic and non-structural improvements to the property. Standard 203(k) is an upgraded version intended for more extensive and costly home remodeling projects that typically involve structural changes to the home.

     2. Fannie Mae HomeStyle Renovation Loans

You can use Fannie Mae’s HomeStyle Renovation Loan to buy and fix up a primary or secondary residence, a vacation home, or a rental property. You can even use it to make energy-saving upgrades. 

The Homestyle loan does not require upgrades, minimum repair costs, or restrictions on the types of repairs. Any changes made to the property, though, must be permanent and done by a licensed professional.

     3. Freddie Mac ChoiceRenovation Loans 

ChoiceRenovation offers homebuyers the flexibility to consolidate the costs of buying or refinancing a home and renovating it into one mortgage.

Unlike a standard home equity loan or line of credit, this mortgage option allows you to borrow against your home’s future value. Moreover, the loan is typical for primary residences. You can use it on a 1-unit second home and finance luxury additions like a pool, hot tub, tennis court, etc.

Apply for a Capital Mortgage Home Renovation Loan

A renovation loan is one of the few that will allow you to borrow based on your home’s after-improvement value.

Whether you plan on buying a fixer-upper or refinancing your current mortgage, a home renovation loan from Capital Home Mortgage will make your home your own. Our loan specialists can also help you explore other options, so you can determine if this route is truly the best for your situation. 

Here at Capital Home Mortgage, we go to great lengths to ensure that our clients end up with a home loan that benefits their lifestyle, finances, and wealth-building goals. 

Contact us at (432) 218-4828 to start your Midland renovation loan application.