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FHA 203(k) Renovation Loans

One of the most popular home improvement loans is the FHA 203(k). You can make home improvements to the house you want, or the home you already own. Use the funds for simple upgrades to your home like a kitchen or bath improvement, or to completely reconstruct a home. You can even use a 203(k) Rehabilitation Loan to tear down an existing structure and build a new one using some portion of the existing foundation.

Borrowers have two options to choose from: The Full 203(k) and the 203(k) Streamline*. Choosing which loan suits you best will depend on the amount of improvement your property needs, but in both cases the home must be your primary residence.

 

Streamlined 203(k)


The 203(k) Streamline is an all-in-one loan used for homes that need minor repairs. It allows borrowers to finance the purchase of an existing home and make improvements or upgrades up to $35,000 before move-in. There are no minimum repair costs and the borrower must occupy the property.
 

Examples of Eligible Repairs:

  • Kitchen remodeling including new appliances

  • Exterior and interior paint

  • New flooring (carpet, tile, laminate)

  • Septic system and well repair or replacement

  • Window and door replacement

  • Energy efficient upgrades

Full 203(k)


The Full 203(k) is an all-in-one loan used when homes need major rehabilitation exceeding $35,000. There must be a minimum of $5,000 worth of repairs, and again, the borrower must occupy the property.
 

Examples of Eligible Repairs:

  • Move a load-bearing wall to open up a floor plan

  • Termite damage repair like replacing the sill plate

  • Basement waterproofing (structural)

  • Major landscaping issues like correction of grading

  • Sidewalk or driveway repair (health & safety)

  • Add a bedroom, bath, or expand a kitchen


 * Not all borrowers will qualify; contact us for more information on fees and terms.

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