FHA 203(k) and HomeStyle renovation loans let you purchase a fixer-upper and finance the renovation in a single mortgage. Based on the after-repair value.
In a competitive Texas market, homes that need work (fixer uppers) often come at a better price. A renovation loan gives you the chance to turn that property into exactly what you want.
Instead of having multiple loans, you can combine both the purchase and renovation costs into one mortgage. There will be no need for a separate personal loan, construction loan or HELOC after.
You can purchase a home below market value and finance the updates needed to bring it up to its full market value. This way, you build equity from day one.
Your loan amount is based on the home's projected value after renovations — not its current as-is value. This means more purchasing power.
FHA 203(k) loans offer low down payment options starting at 3.5%, while Fannie Mae's HomeStyle program follows conventional guidelines with fewer restrictions in certain areas. Both can be used for purchases or refinances.
We help you determine how much you qualify for, including both the purchase price and the renovation budget.
Find the right property and gather contractor estimates for the work. We will work directly with the contractor and if its an FHA Standard 203(k), a HUD consultant will be involved as well.
You can close on the home, with renovation funds placed into an escrow account. You'll begin making your regular mortgage payments while the work is being completed.
The funds are released in stages as the renovation progresses and inspections are completed. Once everything is finished, you move into your updated Texas home.
Common questions about financing home renovations in Texas.