Welcome to Lone Star 203k!
We help bring your dream home to life!
Welcome to Lone Star 203k!
We help bring your dream home to life!
203k Home Renovation Loan Program
Often, those who are purchasing or refinancing a property don’t have the funds for improvements. The FHA 203k Home Renovation Loan Program allows you to purchase or refinance a property, as well as do necessary repairs, upgrades, updates, add an addition, and finance it all in one loan. This program works for 1 to 4 unit owner-occupied properties and can have commercial space, if less than 51%.
Getting Started
The steps involved in obtaining an FHA 203k loan are as follows:
- Find a House: Find a property that meets your needs and aligns with your renovation goals. When selecting a property, it's essential to consider both the location and the potential for improvement, as this can affect the loan amount.
- Get Loan Approval: Once you have found a suitable property, you must work with a lender specializing in FHA 203k loans. The lender will assess your financial situation, review your credit history, and determine the loan amount you are eligible for. Upon loan approval, you can proceed with the following steps.
- Appoint a 203k Consultant: As part of the FHA 203k loan process, you must hire a 203k consultant. This consultant will conduct a Minimum Property Standards (MPS) inspection of the property to assess its current condition and identify any necessary repairs or improvements. The consultant will also produce a feasibility report outlining the scope of work required for the renovation.
- Get Contractor Bids: With the guidance of your 203k consultant, you can solicit bids from licensed contractors. The contractors will review the feasibility report and provide detailed estimates for the renovation work. It's essential to select contractors who are experienced and qualified for the specific renovations you have planned.
- Property Appraisal: The lender will order an appraisal of the property to determine its future value after renovations. This appraisal is based on the projected improvements outlined in the feasibility report. The appraisal helps ensure the loan amount aligns with the property's post-renovation value.
- Select a Contractor: After reviewing the contractor bids, you can select the contractor who best meets your requirements in terms of expertise, cost, and timeline. It's essential to enter into a written agreement with the contractor that clearly outlines the scope of work, timeline, and payment terms.
Are you a law enforcement officer, firefighter, EMT, or teacher (Pre-K through 12)? There is a program designed to allow you to purchase a home for 50% off the listed price. It’s called the Good Neighbor Next Door Program. Click here for more information.
Our partners
National Association of FHA Consultants; America's only national organization devoted to the goal of increasing education, awareness, and uniformity for all involved in the 203k home renovation loan program.
Lone Star 203k
1300 FM2673.# 2356, Canyon Lake TX 78133
(210) 239-0367 San Antonio (512) 853-9801 Austin
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