FHA 203(k) Mortgage

FHA 203(k) loans are an excellent choice for purchasing a fixer-upper or updating your new home with small renovations or major repairs. This government-backed mortgage allows homebuyers to combine their mortgage with the cost of approved renovations into a single loan, saving buyers time and money.


Is It Right for You?

A great option for homebuyers looking to personalize or upgrade their home through renovations and repairs, and seeking lower down payment requirements.


Is It Right for Your Situation?

Primary residence, single family and 2-4 unit properties, condos and townhomes, Planned Unit Developments (PUDs), and manufactured double-wide homes; must finance a minimum of $5,000 for repairs/renovations and maximum loan amounts vary by county (FHA Mortgage Limits by County).


Features and Benefits

  1. Down payments as low as 3.5% of the purchase price
  2. Financing available for large and small projects
  3. Gift funds allowed for down payment and closing costs
  4. Up to 6% Seller Contribution allowed for closing and pre-paid closing costs
  5. Less than perfect credit allowed (incl. past bankruptcy or foreclosure)
  6. Fixed-rate, Adjustable-Rate Mortgages (ARMs) and High Balance options available


If you’re looking to remodel a kitchen or add on a new room, fix items identified in a home inspection or replace the windows, the FHA 203(k) can give you the capital you need without the burden of an excessive down payment or an unreasonable interest rate.

There are two versions of the FHA 203(k) loan that are generally determined by the size or type of renovations financed: the Standard 203(k) is for repairs that exceed $35,000 and the Limited 203(k) works great for repairs below $35,000. Be sure to check out the What Loan is Right for Me page as it highlights the FHA 203(k) along with other construction and renovation loan solutions.

Ready to get expert advice and determine what works best for your personal situation? Contact one of our local, caring mortgage professionals at a Mortgage Center Near You.