FHA 203(k) rehab loan.

Buy or refinance and fund the renovation in one FHA-insured loan, with a low down payment. Two versions, explained before anything is offered.

Pre-qualify

FHA 203(k), at a glance.

What it is

An FHA-insured mortgage that funds the home and the renovation together. The Limited version suits smaller projects, the Standard version larger ones.

Often used for

Buying a home that needs work with a smaller down payment than a conventional rehab loan, or funding energy upgrades.

Keep in mind

FHA mortgage insurance applies, and Standard projects involve a HUD consultant. Your loan officer explains the process and the cost.

How it works

1
Tell us about the home and the work
The property, the scope and a rough budget, plus where your credit and savings sit.
2
Your loan officer compares Limited and Standard
And both against a conventional rehab loan, with the mortgage insurance counted.
3
You choose, then we close and build
Funds are released as work is inspected. Support continues after.

Who it tends to fit.

A smaller down payment

You have some savings but not what a conventional rehab loan asks for.

Credit still building

Your score is fair rather than excellent.

A primary residence

You will live in the home you are renovating.

A home that needs work

The property needs repairs or updates to be what you want.

With strong credit and savings, a conventional rehab loan may avoid mortgage insurance. Your loan officer compares both.

Questions about FHA 203(k) loans.

Limited or Standard?

Limited covers smaller, non-structural projects with a simpler process. Standard covers larger or structural work and involves a HUD consultant. Your loan officer helps you pick based on your scope.

What is the down payment?

FHA minimums apply, based on the total loan including the renovation. Your loan officer gives you the figure.

Can I use it to refinance?

Yes. You can refinance a home you own and fund the renovation in the same loan.

How are contractors paid?

From escrow, in draws as work is completed and inspected.

Can I do the work myself?

Generally no, except in limited cases. Licensed contractors with detailed bids are the norm.

Ready to look at an FHA 203(k) loan?

Tell us about the home and the work you have in mind. A loan officer compares Limited and Standard against a conventional rehab loan before anything is offered. Pre-qualifying will not affect your credit score.

Pre-qualify for a 203(k) loan