Texas Loan Options
Texas FHA 203(k) Renovation Loan
At Pacific Home Loans, we are proud to offer 203(k) Renovation Loans to homeowners and homebuyers across Texas. This specialized financing solution is perfect for those looking to renovate, upgrade, or restore a property, all within a single-close purchase or refinance loan.
Whether you want to enhance your current home or transform a newly purchased property into your dream space, our 203(k) Renovation Loans provide a streamlined process with the financial flexibility to make it happen. At Pacific Home Loans, we are committed to making home improvements simple and stress-free, giving Texans the opportunity to build the home they’ve always envisioned.
FHA 203(k) Renovation Loans
Eligible Property Types:
The types of properties available for this loan are:
- Homes that are 1 year or older
- 1 to 4-unit single family residences
- A single-family town home or condominium (Cooperatives do not apply)
Connect with our experienced loan officer team today to determine if your property meets the requirements for this loan program.
Streamlined FHA 203(k) Renovation Loan
Program Highlights:
There are two different FHA 203(K) loan programs available. The first is the Streamlined FHA 203(k) renovation loan, which is for any homeowner or buyer who wants to make minor changes to their home or condo, with a maximum remodeling fee of $35,000.
Below are the types of eligible and ineligible projects for the Streamlined 203(K) loan:
Eligible Streamline FHA 203(k) Projects:
Repair, Replace or Upgrade:
- Roof, gutters and downspouts
- Improvements for accessibility
- Plumbing and electrical systems
- Flooring
- Existing AC system
- Painting
- Appliances
- Weatherization
- Repair, replace or add exterior decks, patios, porches
- Basement waterproofing
- Window, door, and exterior siding replacement
- Septic and/or well repair or replacement
- Lead-based paint stabilization or abatement of lead-based paint hazards
Ineligible Streamline(K) Projects:
- Any repair taking more than 6 months to complete
- Repair of structural damage
- Major structural repairs
- New construction (adding a room)
- Repairs requiring detailed plans and specifications
- Repairs that would necessitate more than 2 draws
- Luxury items that are not a permanent part of the real estate
- Granite, marble countertops, Jacuzzi tubs, hot tubs, pools, etc.
Standard FHA 203(k) Renovation Loan
The second loan is the Standard FHA 203(k) renovation loan that allows for considerable structural changes, such as improvements, repairs, remodeling or updates to the home. This loan also presents the opportunity for buyers to build a new home or add an accessory dwelling unit (Ohana in Hawaii).
Eligible Standard FHA 203(K) Projects
Structural Alterations and Additions:
- Attached unit (new)
- Garage
- Remodel kitchen and baths
- Modern upgrades removing obsolescence
- Modernize plumbing, heating, A/C and electrical systems
- Install or repair well or septic systems
- Major landscaping
- Roofing, gutters, and downspouts
- Flooring, tiling, and carpeting
- Energy conservation improvements
- Improvements for accessibility
- New non-attached appliances
- Swimming pool repairs
FHA 203(k) Program Summary
Overall, the FHA 203(k) Renovation Loan program offers you the advantage of saving money and qualifying for a lower interest rate over the standard construction to permanent loan in addition to opportunities for distressed property deals. Here are some of the advantages available to you:
- Home improvements with a new refinance or purchase loan
- No payments for upgrades prior to loan closing
- A financing program with lower rates
- Financing for home improvement (construction cost/repairs)
- Roll first six payments into the loan
Once you are pre-approved for a loan and you decided to finance with the 203(K) loan, your loan officer will schedule an appointment with the State of Texas licensed contractor of your choice to provide the following:
- A written work plan along with cost estimates
- The nature, type of repair and the cost of completion
- Proof of license and assurance for each specialized repair
- A written agreement to complete the work for the amount cost estimated within the allotted time
Information and self-help tools are provided for your independent use and are not intended to provide investment advice. We cannot and do not guarantee loan eligibility or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to speak with one of our experienced loan officers for a loan eligibility analysis and custom rate and payment estimate.
