Capital Home Mortgage Texas

Texas Renovation Home Loans

Texas Renovation Mortgage Lender

Texas Renovation Home Loans

Numerous new homes are being constructed across the country, most flying off the market in the blink of an eye.  With the housing market being extremely “hot” as of late, it is comforting to know that homebuyers still have the option to purchase a fixer-upper if they wish to.

Home renovation loans are a valuable resource for both Texas homebuyers and sellers.  They offer homebuyers the choice and opportunity to purchase a home and then modify it to fit their preferences while also permitting the seller to sell the house as it is, saving them from the hassle of making unnecessary repairs and upgrades before selling.

A Texas home renovation loan could be the best option for you under the following circumstances:

  • You are exploring ideas for home improvement.
  • You would like to update a room or section of your existing home or a home you wish to purchase.
  • You want to renovate the house to accommodate your lifestyle or your family’s requirements.
  • You want to expand or add more rooms to the home. 

Home Renovation Loan Programs in Texas

Many old residences only require a little TLC to become somebody’s dream home. These renovation home loan programs will allow you to get more bang for your home-buying buck:

1- FHA 203(k) Loans

FHA 203(k) loans are designed for homebuyers who want to purchase and tackle homes requiring extensive renovations. This particular FHA-backed loan considers the property’s after-improvement value and allows you to borrow the funds necessary to complete the project as part of your primary mortgage.

The FHA 203(k) has two types:

  • The FHA 203K STANDARD covers the cost of major structural and cosmetic repairs/upgrades to your primary residence. The repair and renovation amount should be at least $5,000 and major structural repairs are eligible.
  • The FHA 203K LIMITED is a scaled-down version of the FHA 203K Standard. It is easier to obtain but only covers non-structural repairs set the maximum loan at $35,000. However, major structural repairs are not eligible for this program.

2 – Freddie Mac CHOICERenovation Loan

The CHOICERenovation loan is a low-down-payment conventional loan program offered by Freddie Mac that allows you to finance the purchase of a home and the cost of improvements.

3 – Fannie Mae HomeStyle Loan

The Fannie Mae HomeStyle® Renovation loan enables qualified borrowers to purchase or refinance a home and finance the cost of repairs/renovations through a single loan. First-time homebuyers may obtain a HomeStyle® loan at a 3% down payment.

Interested In Purchasing A Fixer-Upper? 

The next step is to meet with a mortgage specialist to discuss your finances and home buying objectives. 

Capital Home Mortgage will gladly help you find the right home loan for your needs. We originate a wide range of mortgage options, from conventional and government-backed loans to the renovation loans mentioned above.

As a direct mortgage lender in Texas, we have complete control of the entire process –from application to closing. We’re dedicated to making home loans a more direct and pleasant experience for our clients!

Get in touch with one of our home loan experts for more information about our Texas Renovation Home Loans.

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Texas FHA Renovation 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)

Eligible Properties

(Owner-Occupied Only):

  • 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.

Texas 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

Texas 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 Texas Mortgage Programs

Texas Renovation Mortgage Team

Ron Ireland

Branch Manager
NMLS 328363

Doug Harris

Loan Officer
NMLS 2152628

Matt Williams

Loan Officer
NMLS 1945867

Chris Erwin

Loan Officer
NMLS 914064

Texas Mortgage Company Reviews