Austin rehab loans are a great way to fix up a property and rent them out, flip them, or move into a completely updated primary residence. Depending on the situation, one of these loans will be a better fit than the other. While there is some crossover as to their uses, they do differ quite a bit. So, read on to learn more about renovation loans that are available in Austin Texas, and what should know about them.
Austin real estate improvement loans, in three primary forms. These can be used for a variety of purposes, including purchasing a property and fixing it up, to adding major features, like an in-ground pool. Here are the most common rehab loans you’ll find in Austin and beyond:
1. FHA 203k loan. This loan is intended for people who wish to purchase a primary residence and fix it up to live in. It requires a credit score of 500 to 580, with a down payment that is generally around 10 percent. It can be used not only to buy a house but make minor or major improvements to the residence.
2. The Fannie Mae HomeStyle loan. like the loan above, this one can be used to purchase a primary residence. However, it can also be used to purchase a second home or an investment property. It requires a minimum credit score of 620 and a down payment of 3 to 5 percent.
3. The Freddie Mac CHOICERenovation loan. This loan is designed for making improvements and additions, like adding on a master suite.