Loan Program

FHA 203(k) Rehab Loan

Buy and renovate with one loan

What is a FHA 203(k) Rehab Loan?

The FHA 203(k) loan allows homebuyers to purchase a home that needs repairs or improvements while financing both the purchase and renovation costs in a single mortgage. There are two versions: the Standard 203(k) for major renovations exceeding $35,000, and the Limited 203(k) for smaller projects up to $35,000. This program is ideal for buyers who want to purchase a below-market fixer-upper and build instant equity through improvements.

Key Features

  • Finance purchase + renovation in one loan
  • Standard 203(k) for major projects ($35k+)
  • Limited 203(k) for smaller projects (≤$35k)
  • FHA-approved contractor required
  • Funds held in escrow, disbursed at milestones
  • Can include appliances and landscaping

Requirements

  • Minimum $5,000 in eligible renovations
  • Owner-occupied primary residence only
  • FHA-approved consultant required for Standard
  • Licensed, bonded contractor required
  • Work must be completed within 6 months

At a Glance

Min. Down Payment3.5%
Min. Credit Score580

Best For

  • Buyers targeting fixer-uppers
  • Buyers seeking below-market properties
  • Those wanting to customize a home
  • Buyers with limited cash for separate renovation loans

Ready to Apply?

Get pre-approved in as little as 24 hours. No obligation.

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