top of page
Key Highlights
The Benefits
One Mortgage
Combine financing and renovations.
FHA Financing
Designed for eligible FHA borrowers.
Increase Home Value
Finance improvements that add value.
What's Required
Eligible Renovations
Projects must meet FHA guidelines.
Contractor Documentation
Licensed contractors are typically required.
Project Approval
Renovation plans are reviewed before closing.
The Ins & Outs
How it Works
An FHA 203(k) loan allows eligible homebuyers and homeowners to finance the purchase or refinance of a home while including the cost of approved renovations in a single mortgage. Instead of obtaining separate financing for repairs or improvements, eligible renovation costs can be rolled into one loan.
Whether you're purchasing a fixer-upper or updating your current home, an FHA 203(k) loan can help turn your renovation plans into reality while keeping financing simple.
Example Scenario
A homebuyer finds an affordable home in a great neighborhood, but it needs a new roof and kitchen updates. An FHA 203(k) loan allows them to finance both the purchase and eligible renovation costs with one mortgage.
What is an FHA 203(k) loan?
An FHA 203(k) loan allows eligible borrowers to finance the purchase or refinance of a home along with approved renovation costs using a single mortgage.
What types of renovations are allowed?
Many repairs, improvements, and modernization projects may qualify, provided they meet FHA and lender guidelines.
Do I need a licensed contractor?
In most cases, yes. Eligible renovations are typically completed by licensed contractors and must follow program requirements.
Can I buy a fixer-upper with an FHA 203(k) loan?
Yes. FHA 203(k) loans are commonly used to purchase homes that need repairs or updates before moving in.
Is the FHA 203(k) available for refinancing?
Yes. Eligible homeowners may use an FHA 203(k) loan to refinance an existing mortgage while financing approved renovations, subject to lender guidelines.
bottom of page