The Home of Your Dreams: FHA 203(k) Loans for Purchase and Renovation
The dream of renovating and refurbishing a home can become a reality when you choose financing with Preferred Home Lending LLC in Houston, TX. We can help you explore rehab loans like the FHA 203(k) loan. With this unique type of loan, clients in Houston and throughout Texas can finance the cost of renovations along with the purchase price of their new homes. We can eliminate the complexity involved in choosing a mortgage and finding an income source to get your home in the shape you desire. FHA 203(k) loans, also known as Section 203(k) loans, are backed by the federal government. Because of this, our mortgage team is able to provide more options to you. Contact Preferred Home Lending LLC today to learn more about FHA 203(k) loans and other straightforward loan options we provide.
The Specifics of an FHA 203(k) Loan
This flexible mortgage and renovation loan is available to clients with good credit who are interested in consolidating their investment. There are a few specifics to note about a 203(k) program:
- This type of loan is funded through private lenders and insured by the Federal Housing Administration (FHA).
- It may be used to finance the purchase and rehabilitation of an existing home or the refinancing and rehabilitation of an existing one.
- FHA 203(k) insured loans are adaptable to a client’s needs regarding terms and rates.
- Homes financed with this type of “rehab mortgage” must be at least one year old.
- Rehabilitation funds are placed in escrow and must meet or exceed at least $5,000.
- There is a limited 203(k) option available for homes that require a smaller rehabilitation budget.
- An FHA 203(k) loan can be used to convert a property into a one- to four-unit structure.
- A property with a rehab mortgage may need to meet certain energy efficiency requirements.
If you are interested in a home that requires rehabilitation of any sort, the mortgage brokers at Preferred Home Lending LLC can help determine if this type of loan is right for you.
Possible Uses for a Rehabilitation Mortgage
Your FHA 203(k) loan can help you turn a house into the home of your dreams. Common uses for this type of mortgage and rehab financing include:
- Structural repairs or reconstruction
- Repair of safety or health hazards
- Improvements in energy efficiency
- Landscaping or aesthetic property enhancements
- Roofing repairs or replacements
- Enhancing accessibility
- Flooring, wall and ceiling repairs and replacements
- Plumbing work
- Electrical repairs
The possibilities for refurbishing your new or refinanced home are endless.
Finding a Mortgage Option that Meets Your Needs
The team at Preferred Home Lending LLC in Houston is here to help you find the right fit for home financing. In addition to the FHA 203(k) loan, we also offer Conventional Homestyle loans, a limited 203(k) loan, traditional FHA loans, VA loans and more. Whatever home buying path you are on, we can give you advice and guide you through the complex process. We can provide faster financing in most cases than big banks, and we work closely with your Realtor to meet your deadlines. Contact us today to discuss your options and set up a free consultation.