Are You Looking for a FHA 203k Rehab Loan in Texas?

If you are looking for a FHA 203k mortgage in Texas, you have come to the right place.  The FHA 203k is a mortgage aimed at financing in the improvements to the property into your loan.   This is perfect for homes that otherwise would not get financed due to work that needs to be done.  Or possibly for a home that is undervalued due to it needing upgrades or improvements.  To give a better idea on what repairs you can finance, here is a list of items that can be financed into our FHA 203k loan:

• Repair or Replace your Roof

• Repair or Replace your HVAC system, ex AC unit(s)

• Remodel your Kitchen

• Replace your Appliances

• Repair or Replace your Plumbing and Electrical systems

• Replace your Flooring, ex, Carpet, tile, wood floors

• Painting of the exterior and/or interior of your home

• Replace, Repair or Add a deck, patio or porches

• Replace your Windows, Doors and Siding

• Repair or Replace your Septic System

• Etc

Now that we have talked about what can be covered in your loan, let’s talk about some of the other items that are important to keep in mind when getting a FHA 203k loan:

• It is an FHA loan, so you still get the great benefits of a FHA loan including: a low down payment, low rates, and credit scores down to 580

• Max amount of repairs that can be financed in is $35,000(before fees and 10% contingency) and min is $1,000

• No Structural repairs are allowed: foundation, room additions, etc

• Exterior Cosmetic repairs are not allowed: landscaping, fencing, etc

• The Contractor Must be Approved by Us before loan is approved

• There is a maximum of 2 draws, one at closing and one after work is completed.  This means the contractor gets paid 50% of the money due right after closing.  And the other 50% after we have had an appraiser confirm the work has been done.

FHA 203k loans are fantastic loans when buying a foreclosed home that needs work.  Or possibly even a resale home where the seller can not do needed work.  Before thinking of making an offer on a home that will use a FHA 203k you need to make sure the home is worth at least or more than the cost of the purchase price plus the repairs needed.  Otherwise you will need more money at closing to make up this difference or otherwise your loan will not get approved.  If you are looking for a FHA 203k rehab loan in Texas call me today!