Construction & Renovation Loan
FHA 203(k) Renovation
Buy the house that needs work, or fix up the one you have, and roll the repairs into a single FHA loan with one monthly payment.
- CoversThe home and the repairs in one loan
- VersionsLimited and Standard
- Repair fundsHeld in escrow, paid as work is done
- PropertyPrimary residence, 1 to 4 units
How It Works
One loan for the house and the work.
A 203(k) is an FHA loan that is based on what the home will be worth after the repairs. The FHA insures it, so it follows FHA's more flexible qualification, and the repair money is set aside and paid out as the work is finished.
- 01
We scope the project
You choose a licensed contractor and get a detailed bid. Smaller, non-structural work usually fits the Limited version; bigger or structural work needs the Standard version and a HUD consultant.
- 02
The home is appraised as finished
The appraiser values the home as it will be after the repairs, and the loan is sized from the purchase price or payoff plus the cost of the work.
- 03
We find a 203(k) lender
Not every lender offers 203(k) loans, and requirements vary. We match your project with lenders that do, then track the draws until the work is done.
Program Highlights
Why buyers choose a 203(k).
- Finances the purchase or refinance and the repairs in one loan
- The Limited version covers smaller, non-structural projects with less paperwork
- The Standard version covers major and structural repairs, with a HUD consultant
- Down payment can be as little as 3.5% of the total, with qualifying credit
- Repair funds are held in escrow and released as the work is completed
- Available for primary residences, including 1 to 4 unit homes
Common Questions
What buyers ask about 203(k) loans.
It is an FHA-insured mortgage that combines the cost of buying or refinancing a home with the cost of repairing or improving it. Instead of a separate renovation loan, you have one loan and one payment, based on the home's value after the work is done.
The home must be your primary residence, you must meet FHA credit and income standards, and the work must be done by a licensed contractor with a detailed bid. Standard 203(k) loans also need a HUD-approved consultant. Lenders can set their own minimum credit scores, and not every lender offers the program.
Under current FHA rules, as little as 3.5% with qualifying credit, figured on the total of the purchase price plus the repair costs. Borrowers with lower scores may need more down. Gifts from family can help cover it.
The Limited 203(k) is for smaller, non-structural work like kitchens, flooring, roofs or paint, up to a cost cap the FHA sets. The Standard 203(k) is for larger projects, including structural repairs and additions, and requires a HUD consultant to oversee the plans and draws.
Generally no. The FHA expects the work to be done by licensed and insured contractors, and lenders release funds against completed work. Doing the work yourself is rarely allowed, and only under narrow conditions set by the lender.
Yes. The 203(k) is a national FHA program, and we arrange it for homes across Florida. FHA loan limits by county still apply, and we confirm the current limit for your area.
General information only, not a commitment to lend. Loan programs, guidelines, interest rates and terms are subject to change without advance notice.
Price your 203(k) across our lender network.
Send us the address and the contractor's bid, or just the idea. We will tell you which 203(k) version fits and what it takes to close.