Unlock the potential of your dream home with a Texas FHA 203(k) loan!
The FHA 203(k) loan is a government-backed mortgage designed to help buyers finance home improvements and repairs along with the home’s purchase price. Instead of taking out a separate loan for renovations, this all-in-one loan simplifies the process, making homeownership more affordable and accessible. Whether it's outdated decor, worn-out flooring, or much-needed repairs, the FHA 203(k) loan allows you to tackle these improvements without the hassle of multiple loans.
FHA 203(k) loans come in two options based on the scope of renovations:
1. **203(k) Limited Loan**: This option is for non-structural repairs and minor renovations up to $75,000 (with no minimum requirement). It’s ideal for bathroom and kitchen updates, new flooring, plumbing, heating, electrical work, energy efficiency upgrades, new roofing, accessibility improvements, and minor remodeling.
2. **203(k) Standard Loan**: For major rehabilitation projects, the Standard 203(k) loan requires a minimum renovation amount of $5,000. It covers everything included in the Limited loan plus structural alterations, foundation repairs, converting a single-family home into a multi-unit property, moving an existing home to a new foundation, and demolishing and rebuilding sections of the home.
✔ **One Loan, One Payment**: Combine home purchase and renovation costs into a single mortgage.
✔ **Low Down Payment**: As low as 3.5% down if you qualify.
✔ **Flexible Credit Requirements**: Easier qualification compared to conventional loans.
✔ **Higher Home Value Potential**: Renovations increase home value, boosting equity faster.
This loan is perfect for buyers who:
✅ Found a home with great potential but need funds for repairs.
✅ Want to personalize their new home to fit their style.
✅ Are first-time homebuyers looking for an affordable way to enter the market.
If you’re interested in learning more about FHA 203(k) loans and how they can help you finance your dream home, contact Texas United Mortgage today! Our team is here to guide you through the process and find the best loan option for your needs. Call us today at 1-888-505-1718.
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