Many people are unaware that they can use a FHA Home Improvement Loan in Houston to buy a resale, a foreclosure, a short sale (you can find them here at HAR.com) or refinance their existing home. The FHA 203(k) loan will allow total loan amounts just over $270,000 in the Houston area for the purchase or refinance and renovation of an owner occupied home with a down payment of just 3.5% of the total cost (acquistion, renovation, fees, etc…)
This loan does take longer than the average purchase to close (prepare for 60 or more days–depending on the scope of work and how long it takes to get the contractors, budget, etc. completed) but you have the benefit of using the acquisition cost as the property tax base, remodeling the house to be your dream home, and still making a low down payment! The FHA home improvement loan will even pay for up to 6 months of mortgage payments if you cannot stay in the home while the work is being completed (like if you are adding a second story.)
One of my favorite things to do with the FHA Home Improvement loan in Houston is to improve the home’s energy efficiency. The FHA 203k can be used to finance the purchase of radiant barriers, insulation, solar attic fans (my friend Michael Warren at Kool-attics.com does a great job with these) and even new appliances.
For more information about the FHA Home Improvement Loan, feel free to contact me, or comment below!