Buying Foreclosure And Fixer Uppers With FHA 203K Loans Texas

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This BLOG On FHA 203K Loans Texas Was UPDATED And PUBLISHED On March 14th, 2020

Which means buying foreclosure and repair uppers with FHA 203K loans in Texas

The Federal Housing Administration, FHA, now offers FHA 203K Loans Texas for Texas homeowners who need an acquisition and rehab mortgage loan at the same time.

  • The state of Texas is one of the largest states in the nation
  • Real Estate prices have been rising year after year in Texas
  • Whether it is Austin, Dallas, Houston, San Antonio, El Paso, Fort Worth, Arlington, Plano, Corpus Christi, Laredo, Irving, or the dozens of other large cities in Texas, home prices throughout the state of Texas are hot
  • There is no sign of a correction
  • The Federal Housing Finance Agency (FHFA) has increased conforming loan limits in Texas to $510,400
  • This is the second year in a row the FHFA has to increase conventional loan limits due to high home prices
  • The U.S. Department of Housing and Urban Development (HUD), the parent of FHA, has increased FHA Loan Limits for the second year in a row in Texas to $336,760 due to the increases of housing prices

In this article, we will discuss and cover Buying Foreclosure And Fixer Uppers With FHA 203K Loans Texas.

How Can I Qualify For FHA 203k Loans In Texas

The purpose of FHA 203K loans is to motivate lenders to originate and fund home loans on homes that is in need of repairs and rehabilitate them to revitalize neighborhoods:

  • FHA 203K Loans Texas is for homebuyers who are interested in homes that are in need of repairs or homes that are damaged and need rehab
  • It is a combined acquisition and construction loan with a 3.5% down payment for both the purchase and rehab loan amount
  • FHA 203K Loans are also for existing homeowners who need to have repairs done to their homes
  • They can do an FHA 203K refinance loan and pay off their existing mortgage and get a new mortgage with a construction escrow
  • There are two separate types of 203K loans
  • FHA 203K Streamline loans which is the acquisition cost and a maximum of $35,000 construction loan
  • The second type is the full FHA 203K Loan

There is no limit on the construction budget and is often used for room additions and structural changes of the existing home.

Two Types Of 203K Loans

The two different 203K Loan programs are the 203K Streamline and the Regular 203K Loan.

  • The full regular 203K Loan is for properties that exceed $35,000 in renovation costs and can include funding for structural repairs, room additions, foundation repairs, and major renovations like structural changes to the existing homes
  • There is no construction limit to full 203K loans but the after completion value needs to appraise out
  • For 203K Streamline, the maximum budget is $35,000 and that includes costs and reserves
  • No structural changes can be made and no room additions are allowed on 203K streamline loans

Homeowners can do roofing, windows, kitchens, bathrooms, flooring, basements, attics, flooring, appliances, and other repairs that do not change the structure of the home.

THE FOLLOWING REPAIRS APPLY TO FHA 203K LOAN PROGRAMS:

DO THE FOLLOWING REPAIRS APPLY TO FHA 203K CREDIT PROGRAMS

Homes that are least one year old: 

  • Homes that are fairly new and at least one year old can qualify for the 203K Loan program
  • One to four units qualify as well as FHA approved condominium units

Teardowns: 

  • Teardowns qualify for the 203K loan program as long as it is the original foundation
  • Total teardowns can be done as long as the new home is built on the existing foundation

The Following Repairs Can Be Done With 203K Loans:

Types of repairs allowed:

  • HVAC
  • Plumbing and Electrical
  • Roofing and siding
  • Energy conservation
  • Kitchen and Bathroom
  • New appliances
  • Decks, driveways, and patios
  • Room additions or second-story additions
  • Attic and basement
  • Site grading

How To Qualify For FHA 203K Loans

How To Qualify For FHA 203K Loans

Home Buyers of fixer-uppers can qualify for both a full FHA 203K Loans Texas or an FHA 203K refinance loan.  Current Texas homeowners who want to refinance their Texas home with an FHA 203K Loan Texas can do so.  GCA Mortgage Group only requires a minimum credit score of 580 and need to go through the regular mortgage approval process. Gustan Cho Associates is a national mortgage company and are experts in originating FHA 203K Loans Texas where we are in control and our mortgage underwriters will review and analyze the following:

  • Income
  • Debt
  • Liabilities
  • Assets
  • Credit history
  • Credit scores
  • Contractors bids

Borrowers need to get a scope of work and have a general contractor who has no relations with.  Mortgage rates for FHA 203K Loans Texas are slightly higher than traditional FHA purchase or refinance loans and there are more costs and fees involved.  Home Buyers who need to qualify for  FHA 203K Loans Texas need to qualify with direct FHA 203k Lender with no mortgage overlays please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. We are experts in FHA 203K Loans Texas and are available 7 days a week, evenings, weekends, and holidays.

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