FHA 203(k) Renovation Loans
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An FHA 203(k) loan is a government-backed mortgage that lets you finance both the purchase (or refinance) of a home and the cost of renovations all in one loan. Instead of buying a home and then scrambling to find extra money for repairs, everything is wrapped up together from day one.
This program is backed by the Federal Housing Administration (FHA), which means it comes with more flexible credit and down payment requirements than most conventional renovation loans. It’s a great fit for first-time buyers, buyers with limited savings, or anyone who’s found a home with great bones that just needs a little work.
What the FHA 203(k) loan offers
- As little as 3.5% down: One of the lowest down payment options available.
- Purchase or refinance: Works for buying a new home or improving one you already own.
- Flexible credit qualifying: More forgiving than most conventional loan programs.
- Finance repairs and upgrades: From small cosmetic changes to major structural renovations.
- Assumable loans: A future buyer may be able to take over your loan, which can be a selling advantage.
- Renovation costs are financed: No need to pay out of pocket before you move in.
- Renovation work starts after closing: So you’re not in limbo during the process.
- We offer two FHA 203(k) products to fit your needs: The FHA Standard 203(k) program and the FHA Limited 203(k) program.
FHA Standard 203(k)
Our FHA Standard 203(k) program provides flexible financing for major renovations to be made on a new or existing home. The minimum repair amount is $5,000, and there is no set limit for maximum cost of repairs.*
- Roll 6 months of payments into the loan
- Eligible projects range from cosmetic updates to major structural renovations and full additions
- Available for purchase or refinance
- Loan amounts up to 110% of the home’s after-improved appraised value
Commonly financed projects include:
- Full remodeling of kitchens or bathrooms
- Structural alterations and additions
- Major landscaping work and site improvements
- Permanent improvements to the home
- Interior and exterior paint
- New carpets or flooring
- Plumbing repairs or replacement, including well or septic system installation
- Energy efficient upgrades
Appliance replacements or upgrades
Window and door replacements
Add or replace roofing, gutters, and downspouts.
FHA Limited 203(k)
Our FHA Limited 203(k) program is designed to finance new and existing homes that can be remodeled, repaired, or updated for $35,000 or less. There is no minimum renovation cost requirement, so even minor home improvements can be covered.
- Quickly and easily tap into cash to pay for minor property improvements
- Great for cosmetic repairs or upgrades
- Available for purchase or refinance
- Loan amounts up to 110% of the home’s after-improved appraised value
Commonly financed projects include:
- Cosmetic remodeling of kitchens and bathrooms
- Interior and exterior paint
- New carpets or flooring
- Plumbing repairs
- Energy efficient upgrades
- Appliance replacements or upgrades
- Window and door replacements
- Replacement and repair to roof, gutters, or downspouts
FHA 203(k) Program FAQs
This loan is a great fit for first-time homebuyers, buyers with modest savings, or anyone who wants to purchase a home that needs work without having to fund repairs separately.
With the Standard 203(k), there's no set cap on renovation costs, as long as the total loan stays within FHA limits. With the Limited 203(k), renovations must be $35,000 or less.
Yes, all work must be done by a licensed contractor. You cannot use FHA 203(k) funds for DIY projects.
Yes. The FHA 203(k) is available for refinances as well as purchases. It's a great way to finance improvements to your current home.
Renovation work begins after the loan closes. You don't need to have work done before you apply or close.
Yes, like all FHA loans, the 203(k) requires mortgage insurance premiums (MIP). Your loan officer can explain what that means for your monthly payment.
The Right Loan for Where You're Headed
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Get in touch with our team of FHA 203(k) renovation loan experts to learn more about the loan option that’s best for you.
Connect With A Loan OfficerTHIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY GOVERNMENTAL AGENCY, AND THIS OFFER IS NOT BEING MADE BY AN AGENCY OF THE GOVERNMENT.