Check out some amazing transformations using the FHA 203k and HomeStyle Renovation Loan! Buy it, Renovate it all with one Loan! It’s a great way to get into “your” new home!
There are so many great uses for the FHA 203k and the Fannie Mae HomeStyle loans, in Texas, that we had to illustrate a few. Looking back over last month it’s clear our clients had the vision. That’s what is takes with some of these homes. Just because the home is slightly distressed doesn’t mean it isn’t a great find!
Renovation loans, such as the FHA 203k and the Fannie Mae HomeStyle, are so versatile that they can be used for purchases, refinances and even singular items. Let me share with you some examples of some recent projects and how the loans can vary.
Location: Sante Fe, TX
Purchase Price: $153,900
Renovation Total: $54,000
After Improved Value: $200,000
What did they do…
This great couple recently had an addition to their family and needed more space. They found this home located on some acreage and felt it was perfect for them except for the fact it was outdated. Using the full version of the FHA 203k loan they were able to purchase and renovate the home to their needs.
Another big point to make is that the appraised value was a little short – good news is that FHA allows 110% financing so the max amount they finance was $220,000 which was a perfect amount!
Renovation included:
- Masonry work to repair exterior or home
- Install new kitchen cabinets and appliances
- Bring the electrical up to code
- Open the living area by removing a partition wall
- Install new hardwood floors
- Interior painting
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Location: Houston, TX
Purchase Price: $325,000
Renovation Total: $74,603
After Improved Value: $410,000
What did they do…
This client found us through an internet search for a lender offering Renovation Loans. They had this house picked out but knew it would not pass a regular home inspection for a conventional loan so they needed options. Luckily being able to offer then the Fannie Mae HomeStyle Renovation loan saved the day. They were able to purchase “as is” and finance the cost of the repairs which commenced post closing. As you can see they noticed the potential in this great, older home!
Renovation included:
- MAJOR foundation repair
- Fully updated kitchen, bath and master bedrooms
- Removing carpets and install hardwoods
- AC repair
- Minor landscaping in the back yard
- Bring electrical up to code
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Location: Wills Point, TX
Purchase Price: $70,400
Renovation Total: $40,744
After Improved Value: $110,000
What did they do…
A great example of what happens when you start with a lender who doesn’t have renovation lending experience! One afternoon we received a call from these buyers frantic because their lender didn’t know the FHA 203k program. We told them not to worry and took over the loan. They had not even ordered an appraisal so it was a smooth transaction. They were thrilled and in a couple of month they are going to have a great, county home!
Renovations included:
- Foundation and roof repair
- Kitchen updating – preserving some of the original, historic value of the home
- Update bathrooms
- Repair central Heating and AC
- Bring Electrical up to code
- Restore hardwoods
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Location: Irving, TX
Purchase Price: $88,000
Renovation Total: $17,995
After Improved Value: $115,000
What did they do…
Sometimes it doesn’t take much to make the home your own….and bring everything up to code! Due to the house being vacant for so long as a foreclosure it needed a few repairs which was perfect for a Fannie Mae HomeStyle Renovation loan. Being a conventional loan it allowed them to bring the home up to their standards and the down payment was only 5% of the total loan amount.
Renovation included:
- Replace current roof
- Remove burglar bars
- Repair toilets in Hall and Master Bath
- Install new granite counter tops, backsplash, and sink
- Paint all interior walls, trim, and ceiling
- Bring electrical up to code
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Location: Austin, TX
Purchase Price: $76,315
Renovation Total: $10,015
After Improved Value: $99,500
What did they do…
This was a lovely townhome located in central Austin, TX. The seller was a bit elderly and unable to keep it up to date. Our young buyer was ready to take it on and bring it back to life. Since the repairs were minor she was able to use the FHA 203k streamline program to restore the home and move in.
Here is what she did:
- Removed popcorn ceilings and refreshed interior paint
- Refinished hardwood in the living room
- Installed new cabinets and granite in the kitchen
- Installed new tankless hot water heater
- Refinished master tub and installed new vanity
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Location: McKinney, TX
Purchase Price: $130,000
Renovation Total: $17,000
After Improved Value: $150,000
What they did…
This house was a perfect fit for this family and is located in a great neighborhood, needing only minimal repairs. The biggest issue noted was foundation work which is very common with most Texas homes. A Fannie Mae HomeStyle Renovation Loan allowed them to make these repairs and keep them in a conventional loan.
Renovations Included:
- Foundation and roof repair
- Replace exterior door on side of garage
- Replacing valves in kitchen sink
- Add exhaust pipe collar at hot water heater
- Clean out pipes in hall and master bath vanity
- Bring Electrical up to code
As you can probably tell, construction crews are busy all over Texas. Let us help you with your next renovation purchase or refinance. Give us a call today and let’s talk about how we can put together a loan to meet your needs.