Renovation Loan? YES! Create Your Dream Home...Purchase
& Renovate all in One Loan!
Foundation Problems?...No Problem!
Stuck in the 80's?...No Problem!
No Curb Appeal?...No Problem!
"How can this be?" you ask? Well let us tell you about the loan program that
will let you purchase that house you found that you really like except for the fact that it needs work! It
is FHA's 203k Rehabilitatin Loan and it has actually been around since 1939!
First of all, let us clarify...there are two types of 203k loans - the Streamline
203k and the Full 203k. They are both FHA Rehabilitation (or Renovation) Mortgage loans. Some lenders
out there are doing the Streamline version, and most are not even aware there is another version. We prefer the FULL
203K version for several reasons, but mostly because it has more advantages, such as allowing foundation repair while the
Streamline does not, and it is much safer for the client. And though you might have other lenders telling you that no
one does the Full 203k or they are too difficult, neither is true! WE DO THEM - ANYWHERE IN TEXAS! We have
the right team in place that has done these for years, so no, we do not find them difficult and neither do our clients
or agents! That being said, all the information given in our website refers to the FULL 203K.
With this loan, a borrower can purchase or refinance a home and include additional
money for repairs and/or renovations - in one loan with one closing! Standard FHA guidelines apply for the
most part, meaning a minimum down payment of 3.5%, the seller can pay up to 6% of the sales price in assistance toward buyer's closing
costs (including REO foreclosures and individual sellers, except on a HUD foreclosure...HUD will only allow 3% assistance)
and the buyer must plan to live in the home, have good credit and money of their own for down payment and closing -
our program guidelines do not allow for non-occupying co-signers or gift money to help with your purchase.
The Full 203k can be used to:
- Purchase or Refinance a Property
- "Modernize" a Property
- Fix a Required Repair
- Make Optional Improvements, such as a Room Addition or Landscaping
The Full 203k can be used for:
- Single Family Residential Properties
- Condominiums
- Townhomes
