🛠 FHA 203(k) Renovation Loans
“Buy and renovate with one loan — perfect for fixer-uppers, outdated homes, or big dreams on a budget.”
📘 What Is an FHA 203(k) Loan?
An FHA 203(k) is a government-backed renovation loan that lets you buy and fix up a home with a single mortgage. Instead of taking out a separate loan for repairs, the 203(k) rolls both the purchase price and renovation costs into one easy loan — making it ideal for homes that need a little (or a lot) of work.
It’s one of the only loan programs that allows you to finance repairs and improvements upfront at closing.
✅ Why Choose a 203(k) Loan?
-
🔨 Finance repairs, upgrades, or structural work
-
💰 Put down as little as 3.5% of the total loan amount
-
🧾 One loan, one monthly payment
-
🧰 Use for purchases or refinances
-
🏠 Great for older homes, foreclosures, or properties that won’t qualify for traditional FHA loans due to condition
-
👨🔧 Use licensed contractors to complete the work
🛠 What Can You Renovate?
| Eligible Projects Include: |
|---|
| Kitchen & bathroom remodels |
| Roof, HVAC, plumbing, electrical |
| Flooring, paint, siding, appliances |
| Structural repairs and code compliance |
| Accessibility improvements |
| Energy-efficient upgrades |
💡 Luxury upgrades like pools or outdoor kitchens are not allowed.
🧱 Two Types of 203(k) Loans
| Type | Best For |
|---|---|
| Limited 203(k) | Non-structural work under $35,000 |
| Standard 203(k) | Structural changes, major repairs, or projects over $35,000 |
We’ll help you determine the right version based on your renovation plans.
👥 Who’s a Good Fit for an FHA 203(k)?
✔️ First-time buyers looking for value
✔️ Borrowers with credit scores of 620–640+
✔️ Willing to put in some sweat equity (via contractors)
✔️ Buyers considering distressed or outdated homes
✔️ Want to combine purchase and renovation in one loan
🧾 What You’ll Need
| Document | Notes |
|---|---|
| ID and Social Security number | Standard ID for all borrowers |
| Pay stubs and W-2s | Income verification (2 years history) |
| Bank statements | Verify funds for down payment and reserves |
| Purchase contract | Required before moving forward |
| Contractor bids or estimates | Must use licensed contractors (no DIY) |
| Renovation plans and specs | Needed for lender and HUD consultant approval |
🧠 FAQs
Can I do the repairs myself?
No — work must be done by licensed contractors approved by the lender.
What if I find more issues during renovation?
The loan includes a contingency fund to cover unexpected costs.
Can I live in the home during repairs?
Yes, in most cases — though major renovations may require you to stay elsewhere temporarily.
Can I use 203(k) for a refinance?
Yes — you can refinance your current mortgage and roll in funds to renovate.
🔗 Related Pages
🚀 Ready to Buy & Renovate with One Loan?
Let’s turn that “almost perfect” property into the home you’ve been dreaming of — with financing that makes it all possible.
🔵 [Apply for FHA 203(k) Loan]
📞 [Talk to a Renovation Loan Expert]
📋 [Get Prequalified for a Fixer-Upper]
🔒 Disclosure
This is not a commitment to lend. FHA 203(k) loans are subject to credit approval, renovation plans, licensed contractor requirements, and FHA underwriting guidelines. All renovations must be approved by the lender and completed by qualified professionals. Not all applicants will qualify. Additional conditions, fees, and restrictions may apply.