San Antonio Renovation Home Loans

Renovating a home often requires a considerable amount. Even if you can finance the renovation out of pocket, using your savings to finance a home renovation might be unwise, especially with the recent wave of economic uncertainties triggered by the COVID pandemic. 

If you must renovate your home, consider taking a renovation home loan. You can spread the amount and pay it for several months or even years. 

Capital Home Mortgage offers different home renovation loans depending on your qualifications. We have FHA 203(k) loans for those with not-so-good credit scores and history. Moreover, we have conventional renovation loans under Fannie Mae and Freddie Mac. Let’s go over these types of renovation home loans to get a clearer picture of which best suits your requirements. 

FHA 203(k) Loans

You can use an FHA 203(k) loan for two purposes. You can use it to renovate an existing home or buy an old house and renovate it. This type of loan is ideal for low-income families who can’t afford a new home. They can use the money to buy an old house for a low price and use the excess funds for renovations and repairs.  

Alternatively, you can use this loan to renovate your home if it’s due for repairs or modifications to accommodate more people.

• Standard 203(k)

Get the standard 203(k) if you need an extensive renovation. You can use this loan for plumbing, flooring, heating and cooling, and remodeling. There is no cap for the loan amount, but the minimum ask is $5,000. Take note that the total value of the property must be within FHA limits to qualify for this loan. Luxurious and extravagant renovations are not covered in this loan program.

• Limited 203(k)

A limited 203(k) loan is ideal if you only need money for minor repairs. It’s capped at $35,000 but usually easier to obtain than a standard 203(k).

Fannie Mae HomeStyle Renovation Loan

The HomeStyle Renovation Loan of Fannie Mae lets you buy a home and use the excess funds for renovations. However, it would help if you first had an approved contractor before using the extra funds. The approved contractor will submit the renovation plans to the bank for a “draw.” The bank will then ensure that work is done before paying the contractor. You can also use this home loan for a one-unit second home or investment home.

Freddie Mac CHOICERenovation Loan

The FreddieMac CHOICERenovation home loan works like HomeStyle Loan but prioritizes specific borrowers. First-time home buyers, rural home buyers, senior homeowners, and multigenerational households can get preference for CHOICERenovation loans. You can finance renovations for up to 75% of your home’s value.

Get a Renovation Home Loan in San Antonio

Talk to our mortgage experts to learn more about the different San Antonio home renovation loans we offer at Capital Home Mortgage. With direct mortgage lending, we can provide you with the best mortgage services and rates since we handle the entire loan process from pre-approval to funding. 

Contact our renovation team now by calling (800) 850-4265.