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FHA 203k Renovation Loans in Plano Texas

By
Mortgage and Lending with CrossCountry Mortgage NMLS # 243437

Special Government Home Renovation Loan Program using FHA 203k Renovation Loans in Plano Texas.

Many people are not aware of a special government loan program that is part of the Federal Housing Administration or FHA (a department within HUD). A buyer or existing home owner can do meaningful amounts of remodeling or updates to their existing home without having a higher cost second lien thanks to this special FHA loan program.

However, this loan program doesn't allow for "luxury items" in your home such as a swimming pool, hot tub, or other accessories. Although, you can repaint, replace flooring and appliances, add a room to an existing structure (which can add to value tremendously as you increase the square feet of your home) as well as remodel cabinetry in kitchens and bathrooms.

This loan program has many advantages but one of the biggest is that you have all of your acquisition or refinance loan with your improvement loan in one low interest rate, which is a government guarantee loan instead of two separate loans (which are always higher interest rates).

The Federal Housing Administration calls this FHA Loan program a 203K loan. For more information, please visit the FHA website: 

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou 

In order to do this loan program, lenders must be approved by HUD. 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 within the FHA 203k Renovation Loans in Plano Texas. The first is what is called a streamline 203K loan. The dollar amount of improvements is generally lower for a streamline 203K loan, and there can not be any structural improvements on a 203K Streamline loan. But, basic cosmetics, etc. are allowed on a streamline 203K Rehab loan. 

The second type of 203K loan is called a Full 203K loan. The full 203K loan offers the ability for the home owner to renovate or rehab their property including structural improvements, like doing foundation work or adding another room, etc. Now you can have the home of your dreams- so when looking for a home- you can envision new carpeting, paint, lighting, remodeled kitchen or bathrooms, etc. which may allow 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 area please contact Joy Bates, 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.

Posted by

The Legacy Group of CrossCountry Mortgage

Chad and Joy Bates NMLS #243437

817-860-3232

1205 West Abram St. 

Arlington, TX 76013

Comments (1)

Brenda J. Andrew
ULTIMA REAL ESTATE - Willis, TX
Professional Realtor in Conroe/Willis, TX

Hi Chad & Joy!  This is so nice to see a blog on this.  This is a loan product I learned about in Real Estate School a very long time ago.  I have been unsuccessful to find a lender here in Corpus Christi Texas who is able to do this type of loan.  I am sure there is someone out there, but I am not sure who it is.  People should really utilize this service in your area.  It is a great way to get the home of your dreams, for a price that is affordable.  Have a great day and thanks for sharing this valuable information!

Sep 21, 2020 04:58 PM