Eyeing a classic Tobin Hill bungalow that needs work, but not sure how to finance the rehab? You are not alone. Many homes here are rich with character and need thoughtful updates, which makes renovation loans a smart path. In this guide, you will learn how FHA 203(k) and Fannie Mae HomeStyle work, what they cost, and how San Antonio’s historic and permit rules affect your timeline and budget. Let’s dive in.
Quick snapshot: 203(k) vs. HomeStyle
- FHA 203(k): One mortgage for purchase plus repairs. Designed for owner-occupants with low down payment options and FHA mortgage insurance. Good for health, safety, and major system work. HUD’s 203(k) program overview
- Fannie Mae HomeStyle: Conventional loan that rolls in renovations with broader project types and cancellable private mortgage insurance when equity grows. Allows primary homes, second homes, and one-unit investments. HomeStyle product page
Who each loan fits
FHA 203(k) at a glance
- Best for: Owner-occupants who want low down payment and need moderate to major repairs.
- Project size: Limited 203(k) for non-structural work up to HUD’s cap. Standard 203(k) supports structural or major work and uses a HUD consultant. HUD 203(k) details
- Occupancy: You must live in the home. Investors are not eligible. Historical investor restrictions
Fannie Mae HomeStyle at a glance
- Best for: Larger or complex projects, or if you want conventional PMI that you can remove later.
- Project size: Wide range, including additions and accessory dwelling units, subject to lender and appraisal rules. HomeStyle overview
- Occupancy: Primary homes, one-unit second homes, and one-unit investment properties are eligible. HomeStyle eligibility
Key differences that matter in Tobin Hill
Occupancy and property types
- 203(k): Owner-occupied only, including 1–4 units if you live in one unit.
- HomeStyle: Primary residences up to 4 units, plus one-unit second home and one-unit investment options.
Loan limits in Bexar County
- As of January 2025, the conforming one-unit limit is $806,500. Conforming limits
- As of January 2025, the FHA one-unit limit in Bexar County is $557,750. If your purchase plus rehab exceeds that, 203(k) is not an option. FHA loan limits update
Down payment and LTV
- 203(k): Follows FHA rules. Down payment can be as low as 3.5 percent with qualifying credit and within FHA limits. HUD 203(k) program
- HomeStyle: Allows high loan-to-value on some primary-home purchases and supports second home and one-unit investment financing with higher down payments. HomeStyle FAQs
Mortgage insurance and long-term cost
- 203(k): Requires FHA upfront and annual mortgage insurance, which usually cannot be canceled without refinancing. FHA MIP basics
- HomeStyle: Uses PMI if you put less than 20 percent down. You can request removal when you reach 20 percent equity, and it drops automatically at 78 percent LTV. PMI removal rules
Eligible repairs and scope
- 203(k) Limited: Non-structural updates up to HUD’s limited cap. Standard 203(k): Structural work, additions, systems, and more with a HUD consultant. HUD 203(k) details
- HomeStyle: Broad scope that can include additions, ADUs, and exterior projects that meet local code and zoning. HomeStyle overview
Process and timeline
- 203(k): Standard loans require a HUD consultant, a work write-up, escrowed draws, and inspections. Many projects run on a roughly six-month completion window after closing, depending on lender and scope. HUD consultant process
- HomeStyle: Lender-managed renovation holdbacks, plans, contractor bids, and an as-completed appraisal. Many lenders allow up to 12–15 months to complete work. HomeStyle FAQs
Local rules that can shape your choice
Historic-district approvals
Tobin Hill includes a City-designated local historic district. Exterior changes that affect character, such as windows, porch details, roofline, or front fencing, often require review by the City’s Office of Historic Preservation before permits are issued. Build this time into your loan and construction schedule. Tobin Hill Historic District
Permits and contractor registration
In San Antonio, most structural, electrical, plumbing, HVAC, additions, pools, and ADUs require permits. Contractors must be registered with the City’s Development Services Department before permits can be pulled. Confirm credentials, insurance, and permit plans up front. Contractor registration
Typical Tobin Hill rehab needs and cost context
Older homes here often need electrical, plumbing, HVAC, roofing, or foundation work. Cosmetic updates can range from about $10,000 to $50,000, while kitchen remodels and whole-house projects vary widely based on scope and finishes. Always include a 10 to 20 percent contingency in your budget. Renovation cost ranges | HomeStyle contingency guidance
How to decide: a simple checklist
- Confirm how you will use the property. Owner-occupant points you toward 203(k) or HomeStyle. Second home or one-unit investment points to HomeStyle. HomeStyle eligibility
- Verify loan limits early. If your purchase plus rehab tops $557,750 (FHA one-unit in Bexar County as of January 2025), 203(k) is out. FHA limits update
- Compare payments and insurance. Price out FHA MIP versus conventional PMI scenarios with a local lender. FHA MIP basics | PMI removal rules
- Get itemized contractor bids. You will need a detailed scope to support the as-completed appraisal and lender draw schedule. HUD consultant process
- Check historic and permit steps. Confirm what exterior work requires historic review and what permits your scope needs. Tobin Hill Historic District | Contractor registration
- Plan your timeline. 203(k) often targets a shorter completion window. HomeStyle commonly allows up to 12–15 months, depending on lender.
Which loan, when? Real Tobin Hill scenarios
- You want to live in the home, replace dated systems, and refresh kitchens and baths, and you need a low down payment. Consider 203(k) if you fit the FHA limit and timeline.
- You need an addition or ADU, or your after-repair value will exceed the FHA limit. Consider HomeStyle for conventional terms and broader project scope.
- You are buying a one-unit investment in Tobin Hill and plan a significant rehab. HomeStyle is the path since 203(k) excludes investors.
Next steps
If you are weighing a renovation buy in Tobin Hill, start with a clear budget, a lender comparison, and a quick check on historic approvals. When you are ready to explore properties that fit your plan, reach out to a trusted local advisor who knows both the market and the process.
For tailored guidance and a curated search that fits your renovation goals, connect with Jennifer Santrock.
FAQs
What is the main difference between FHA 203(k) and HomeStyle for Tobin Hill?
- 203(k) is FHA-insured for owner-occupants with low down payment and required FHA mortgage insurance, while HomeStyle is conventional with broader occupancy options and PMI you can cancel.
How do Bexar County loan limits affect my renovation loan choice?
- If your total loan amount will exceed the FHA one-unit limit ($557,750 as of January 2025), you cannot use 203(k) and will likely look at HomeStyle or another conventional option.
Can I use a renovation loan for a Tobin Hill home in the historic district?
- Yes, but you must plan for City historic review on exterior changes and secure required permits, which can affect timing and scope.
Do I need a consultant or special inspections for these loans?
- Standard 203(k) requires a HUD-approved consultant who oversees the scope and draws, while HomeStyle uses lender-managed plans and inspections, and some lenders require a consultant for larger jobs.
When can I remove mortgage insurance on a renovation loan?
- With HomeStyle, PMI can usually be canceled at 20 percent equity or automatically at 78 percent LTV, while FHA MIP on 203(k) typically remains for a set period or the life of the loan unless you refinance.
