203k basics

Let's say you found a home in a neighborhood that you love, but something about it just isn't right. Perhaps it's outdated in the kitchen, bathrooms, flooring or windows (or all of the above). Or maybe the kitchen isn't big enough or it needs an extra bedroom. With the FHA 203k loan program, you can make all these upgrades when you buy the home.

Instead of getting a loan for the house and then needing a second loan for improvements at a higher interest rate, the 203k loan provides for the construction funds along with the home purchase funds. This way you only have one loan at a low interest rate for a custom renovated home. Why buy a fixed-up home from a flipper who renovated it for the center of the bell curve when you can choose your own finishes to align with your style?

General information:

• Fixed interest rate or adjustable interest rate
• Conforming loan limit applies
• Credit score as low as 580
• Down payment as low as 3.5%
• Must be owner-occupied residence
• 1 to 4 unit properties
• Work to begin within 30 days, and be complete within 6 months


203k standard

• Minimum $5000 repair, with no maximum
• Remodeling that includes moving walls around
• New kitchens, bathrooms, flooring
• Room additions
• Attached Granny Flat (with separate kitchen)
• Convert a detached garage into a Granny Flat


203k limited

• Minimum $5000 repair, maximum $35,000 including all costs
• Repair/replace roofs, flooring
• Repair/replace heating/cooling, plumbing, electrical systems
• Repair/replace/add decks, porches, patios
• Remodel kitchen, bathrooms
• New paint, doors, windows, siding
• New appliances
• Accessibility features, basement finishing, septic and pool repairs
• No structural work, no room additions, no uninhabitable homes