Renovation Home Loans Texas

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 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, setting 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 ultimately control the entire process –from application to closing. We’re dedicated to making home loans a more natural 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.