Special Government Home Renovation Loan Program using El Paso Texas FHA 203k Renovation Loans.
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:
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 El Paso Texas FHA 203k Renovation Loans. 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 El Paso Texas FHA 203k Renovation Loans 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.