FHA 203(k) Renovation Loans

203(k) renovation loans are designed to help borrowers finance home repairs  plus the purchase or refinance of a primary residence. Backed by the Federal  Housing Administration (FHA), these loans allow a variety of home  improvements and feature as little as 3.5% down payment plus low  closing costs.

Two Types of 203(k) Loans

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)

This 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

Speak to an expert from First Heritage Mortgage for a full list of eligible home improvements and full program details.

FHA Limited 203(k)

This 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

Speak to an expert from First Heritage Mortgage for a full list of eligible home improvements and full program details.

Mortgage +Plus℠: Free Down Payment Protection on all FHA Purchase Loans

Take one step towards your next home with a mortgage solution that helps protect your hard-earned down payment.

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* Total value of property must fall within the FHA mortgage limit for the area. The value of the property is determined by either (1) the value of the property before rehabilitation plus the costs of rehabilitation, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less. Learn more at https://www.hud.gov/program_offices/housing/sfh/203k/203k–df. Look up FHA mortgage limits by area at https://entp.hud.gov/idapp/html/hicostlook.cfm.

First Heritage Mortgage, LLC is not affiliated with the United States Department of Housing and Urban Development, the Federal Housing Administration, nor any other governmental agency.

Go From Fixer-Upper to Fabulous with an FHA 203(k) Loan

Let us help you transform a property with potential into your dream home.