Special Government Rehab Program- FHA 203K Renovation Loans in Plano Texas. There is a special government loan program that is part of the Federal Housing Administration (FHA)- a department within HUD.
A home buyer or existing home owner can remodel or update their home without having a higher cost second lien thanks to this special FHA loan program. You are not allowed to finance items such as a hot tub or swimming pool through this FHA loan program. Items such as remodeling cabinetry in kitchens and bathrooms, painting, adding wallpaper, replacing appliances and flooring, or even adding a room to an existing structure (which will increase the value of the homes square footage) are allowed.
There are many advantages with this government loan program but the biggest is the ability to have all of your acquisition or refinance loan costs together with your renovation loan in one low interest rate instead of two separate government loans that are always of higher interest rates. 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 that brokered loans in this niche create, 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 FHA 203K Renovation Loans in Plano Texas. The first is what is called a streamline 203K loan. There can't be any structural improvements on a 203K Streamline loan 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 are allowed.
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 as well as the ability for the home owner to rehab or renovate their 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.
For more information on renovation or rehabilitation of your home using FHA 203K Renovation Loans in Plano Texas or surrounding areas please contact Joy Bates, our Senior Mortgage Banker at 817-860-3232 or log on to http://legacyfinancial.com and request more information.
Joy does loans all over the state of Texas. Email her today: joybates@leader1.com.
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