Need Options For Your Renovation Lending Needs in Texas? Don’t get left in the dust! Transformations are easily made, all over Texas, using the FHA 203k or Fannie Mae HomeStyle Renovation loan products!
It’s important to have options in today’s mortgage world. When it comes to Renovation Lending, working with a lender who offers options and different programs is key to a successful closing. Being able to custom fit a loan to a particular need or circumstance is very much needed when it comes to Renovation Lending – especially when speaking of the FHA 203k or the Fannie Mae HomeStyle loans.
Did you know…There is more than just the FHA 203k loan when it comes to renovation. Why is this important? The main reason is that it gives your client options!
No need to push anyone into a loan just because it’s the only one available – from FHA to Conventional options…we have them covered!
What?!? Fannie Mae is doing away with the HomePath and HomePath Renovation loans…YES it is true. In fact the program ended October 6th.
Wondering what to do? Not to worry…Did you know we offer the FHA 203k (full and streamline) as well as the Fannie Mae HomeStyle Renovation loan programs? All are available for purchase transactions as well as refinance transactions.
Let’s talk about the renovation lending options and some of the highlights from the programs…
Facts about Fannie Mae HomeStyle Loans:
- Loan amounts up to $417,000
- Pools can be repaired or installed – providing the appraisal supports value
- Minimum down payment is 5% of the total loan amount (purchase price plus renovation costs)
- With a 20% down payment mortgage insurance can be avoided
- Investors may purchase and renovate
- 2nd homes are allowed
Facts about FHA 203k Loans:
- Loans up to the county loan limit – currently $287,500 in Dallas County
- Down payment is 3.5% of the total loan amount (purchase price plus renovation costs)
- Can finance up to 110% of the “after improved” value on a purchase transaction
- Minimum FICO of 620
- For minor repairs there is an option to use the FHA 203k streaming whereas for larger projects there is a Full 203k version
Both programs allow for foundation repair, roof repair, additional square footage and back yard upgrades! They are also available for purchases and refinances. Sometimes it’s just easier to renovate than to move to a new home!
It’s important to note that renovation loans, while commonly used for properties being sold by HUD or foreclosed properties, can actually be used for just about any property type. This includes Condos, Townhomes and of course Single Family Homes.
Have a smaller more cosmetic project? Did you know FHA offers a slimmed down version of the 203k loan called the FHA 203k streamline loan? As the name implies it is a loan great for smaller projects or those that will be more cosmetic in nature. While they do still require a full bid from a general contractor, using this loan eliminates the need for the HUD Consultant. Also these loans tend to finish up a bit quicker.
Some examples of FHA 203k streamline uses are for minor kitchen updates such as granite or appliances. It can also be used to install hardwoods or replace carpet. Maybe you just need some minor plumbing or some bathroom updating. Items such as these are a perfect match for this type of Renovation Loan.
Give us a call today and let’s talk about your needs. We will listen to you and put together a Renovation Loan that best fits your needs and situation.