Need repairs or renovations on your new home? Consider a 203k loan!

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The FHA 203k loan program gives the best flexibility for purchases or refinances for homes that need repairs or renovations. The required down payment is 3.5% with $500 of the borrower’s own funds. The remaining funds can be gifted by a family member.

THE FHA 203K IS FOR PRIMARY RESIDENCE ONLY, NO INVESTORS ALLOWED.

Property Type & Loan Limits Include:

  • Single Family/Townhome/Condo: up to $410,000;
  • 2 Unit: up to $524,850;
  • 3 Unit: up to $634,450;
  • 4 Unit: up to $788,450.

FHA will lend money based on the purchase price plus the cost of construction. It is one loan. For a 203k Streamline Loan, $29,000 or less in construction costs is required to qualify. Typically, any structural work or work costing greater than $29,000 is required for a Full 203k Loan.

Full 203k loans require an FHA approved consultant who guides you through the entire construction process. The consultant is the first person a buyer would meet once they have a contract on a home. The construction work would begin shortly after the seller transfers the property to you and would need to be completed within 6 months.

Streamline Construction/Renovation allowed:

  • Repair/Replace roofs, gutters, downspouts
  • Upgrade existing HVAC systems, plumbing, electrical systems, and flooring
  • Kitchen remodels
  • Weatherization including storm windows, doors, insulation, weather stripping
  • Purchase/installation of appliances, including freestanding ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
  • Accessibility improvements for persons with disabilities.
  • Painting, both exterior and interior.
  • Repair/replace/add exterior decks, patios, porches
  • Basement finishing and remodeling, which does not involve structural repairs
  • Basement waterproofing
  • Window and door replacements and exterior wall re-siding
  • Septic system and/or well repair or replacement
  • Lead-based paint stabilization or abatement of lead-based paint hazards

Full 203K Work allowed:

  • Includes all items listed above as well as:
  • Major rehabilitation or remodeling such as the relocation of a load-bearing wall
  • New construction on room additions
  • Repair of structural damage
  • Repairs requiring detailed drawings of architectural exhibits
  • Landscaping or similar site amenity improvements

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