The FHA 203(k) Renovation Loan

An important tool for community and neighborhood revitalization, the FHA 203(k) loan offers flexible qualifying and low down payments:

  • FHA standard guidelines
  • FHA down payment (3.5%)
  • Assumable loans
  • Purchase or Refinance and Improve all in one loan
  • Down Payment Assistance Available (certain restrictions apply)
  • Can be used in conjunction with HUD $100 down program (certain restrictions apply)

The 203(k) loan program offers borrowers the resources to rehabilitate a home that may be in need of repair, either the home that they currently live in, or that special fixer-upper opportunity. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.

The FHA 203(k) program has already provided many buyers with the funds necessary to buy their first home, or greatly improve a current home. The FHA 203(k) loan is available to borrowers of all income levels, to homeowners who plan to occupy the house, and for homes with one to four units.

  • 203K Eligible Borrowers:
    • Owner Occupants - Purchase - Refinance
    • Investors NOT allowed
  • Types of 203K Loans:
    • 30 or 15 year fixed rates
    • Assumable to a qualified buyer, with no money down
  • Eligible Properties:
    • Single family dwellings
    • Condominium (certain restrictions apply)
    • Townhouse
  • Improvements:
    • Changes for improved functions and modernization
    • Elimination of health/safety hazards
    • Changes for aesthetic appeal
    • Plumbing, heating air conditioning, and electrical upgrades
    • Well and/or septic repairs
    • Roofing, gutters and downspouts
    • Flooring, tiling and carpeting
    • Energy conservation improvements
    • Appliances/Kitchen and Bath Remodel
    • Access for the disabled
  • Appraisal:
    The appraiser will be given a copy of your "work-write up" to estimate an after improved value for your new or current home. We loan against that improved value thus allowing you to finance the cost of repairs.
  • Other Eligible Costs:
    (THESE COSTS MAY BE FINANCED INTO THE MORTGAGE LOAN)
    • Contingency reserve (10-15%)
    • Permit costs
    • Consultant fees
    • Inspection and title update fees
  • Here are a few suggestions to get you started:
    • Get pre-approved
    • Locate a home and submit an offer
    • Contact us to discuss rehabilitation options