Rehab Your Houston Texas Home with an FHA 203K Loan
Special Government Rehab Program- FHA 203K Rehab Loans in Houston Texas. There is a special government loan program that is part of the Federal Housing Administration (FHA)- a department within HUD. Thanks to this special FHA loan program, a buyer or home owner can do meaningful amounts of remodeling or updates to their new or existing home without the higher cost of a second mortgage.
You are not allowed to finance "Luxury items" such as a hot tub or swimming pool through this FHA loan program. Repaint, remodel cabinetry in kitchens and bathrooms, add wallpaper, replace appliances and flooring and even add a room to an existing structure (which will increase the value of the homes square footage).
The biggest advantage with this government loan program is that instead of having two higher interest loans, you can combine your primary mortgage and your rehab costs into one low government loan and interest rate. This FHA loan program is called a 203K loan, as defined by the Federal Housing Administration. For more information, please visit the FHA website: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou
Lenders have to be approved by HUD in order to do this loan program. To avoid delays, it is essential that you go with a lender that can offer in house underwriting and expertise instead of using a mortgage broker due to the intricacies of the loan program. There are two types of loan programs that are part of the 203K Renovation Loan program for Houston Texas.
The first is what is called a streamline 203K loan. With a Streamline 203K loan, there can't be any structural improvements and the dollar amount is generally lower for a 203K streamline loan. Only basic cosmetic repairs are allowed with a Streamline 203K loan. Items such as painting, plumbing, electrical, and flooring can be financed with this type of 203K loan.
A Full 203K loan is the second type of a 203K loan. A full 203K loan offers structural improvements like adding another room or doing foundation work and you can also do rehab or renovate your current property. It's now possible to envision new carpeting, paint, a remodeled kitchen or bathrooms and lighting when looking for your new home and have the home of your dreams, which will give you much more flexibility in your home purchase or to remodel your existing home.
To get more information on renovation or rehabilitation of your home using a FHA 203K Renovation Loan for Houston Texas or surrounding areas please contact Richard Smith at (281) 994-4240 , richard@therichardsmithteam.com or visit our webite: http://www.texashomebuyingtips.com and request more information.
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Richard Smith
Branch Manager/Mortgage Banker NMLS #220593
The Richard Smith Team at LeaderOne Financial Corporation | 22503 Katy Freeway Suite 27, 77450
Office281-994-4240 | Cell832-887-1300 | Fax281-840-6881
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