FHA 203(k) Loans
Finance both home purchase and renovation costs in a single loan
What is an FHA 203(k) Loan?
An FHA 203(k) loan is a government-backed mortgage that finances both home purchase (or refinance) and renovation costs in a single loan.
Key Features
Combines purchase/renovation costs
Available for homebuyers & owners
FHA-insured: easier qualification, lower credit score, 3.5% down
Must be owner-occupied (primary residence)
Types of 203(k) Loans
Standard 203(k)
- •For major structural renovations
- •Requires a HUD-approved consultant
- •No repair cost cap (within FHA limits)
Limited 203(k)
- •For non-structural/cosmetic repairs
- •Maximum $35,000 in repairs
- •No consultant required
Eligible Improvements
Roof
Plumbing
HVAC
Electrical
Kitchen remodels
Bath remodels
Flooring
Painting
Energy-efficient upgrades
Accessibility improvements
Pros
One loan for home and repairs
Lower down payment
Increased home value
Cons
More paperwork/oversight
Slower process
Primary residences only
Requires approved contractors
Ready to Explore FHA 203(k) Options?
Let us help you navigate the FHA 203(k) process and make your renovation dreams a reality.
Contact Us Today