Loan program · Construction & Renovation
FHA 203(k) Renovation Loans
The FHA 203(k) program combines FHA purchase or refinance financing with renovation funds in a single loan. There are two versions: a limited version for smaller, non structural projects, and a standard version for larger projects that require a HUD consultant.
Who it is designed for
- Buyers using FHA financing on a home that needs repairs
- Buyers of older homes with dated systems or deferred maintenance
- Homeowners with FHA financing who want to renovate
Eligible occupancy types
- Primary residence only
Down payment or equity
FHA minimum down payment applies, calculated on the total of purchase plus renovation costs.
Major benefits
- Repairs are financed into the mortgage rather than paid in cash
- FHA credit flexibility applies to the renovation loan
- Structural work is possible under the standard version
Important considerations
- The standard version requires a HUD consultant
- Contractor documentation requirements are strict
- FHA mortgage insurance applies
- Timelines are longer than a standard FHA purchase
How qualification generally works
- FHA eligibility and standard FHA credit and income review
- Contractor bids and scope of work
- As completed appraisal
- Consultant involvement on standard 203(k) projects
Documents commonly requested
- Photo ID and Social Security number for each borrower
- Most recent pay stubs covering a full 30 day period, if you receive W2 wages
- W2s and/or federal tax returns for the most recent years requested
- Two months of asset statements for accounts used for down payment and reserves
- Current mortgage statement, homeowners insurance and property tax information on properties you own
- Explanations for large or non payroll deposits
- Contractor bids, license and insurance
- Scope of work and, for standard projects, consultant work write up
Frequently Asked Questions
Related programs and next steps
Fannie Mae HomeStyle Renovation
Conventional renovation financing with broader property and improvement eligibility.
Learn more CoreFHA Loans
Government insured financing with flexible credit and down payment guidelines.
Learn more Construction & RenovationRenovation Loans
Finance the purchase or refinance plus the improvements in one mortgage.
Learn moreConsidering fha 203(k) renovation loans?
We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.