Dallas rehab loans are an ideal way to finance home improvements, even the purchase of the real estate, and best of all, they come in a few different forms. Whether you’re looking to buy a primary residence or an investment property, a renovation loan might be the best option. Read on to learn more about what you need to know about rehab loans in Dallas.
Dallas rehab loans basically break down into three different products. All are offered through the federal government, with private lenders often facilitating the funding. Here are the most common types of renovation loans in Dallas and beyond:
1. FHA 203k loan. This financing product is structured by the Federal housing authority and is for the purchase of a primary residence. It can also be used to fund major or minor home improvement projects. The FHA 203k loan requires a credit score of 500 to 580, with a 10 percent down payment.
2.The Fannie Mae HomeStyle loan. Like the above loan, this one can also be used to purchase a primary residence. However, it does also offer the option to purchase a second home or an investment property. It also allows primary homeowners or investors to make major or minor improvements to the property.
3.The Freddie Mac CHOICERenovation loan. This type of financing is a bit different, as it allows for home improvement projects that are permanent fixtures. In other words, with this type of loan, it’s possible to add a bathroom or even something like put in a swimming pool.