FHA 203k

FHA 203k Loans

Are you looking for a lender that does FHA 203k loans? The two types of FHA 203k loans are FHA limited 203k and FHA standard 203k. FHA 203k loans are for owner occupied/primary residence purchases and refinance transactions allowing improvements to a home.

Eligible Properties

The property type can be:

  • Attached and detached single family residences.
  • Attached and detached Planned Unit Development (PUD).
  • 2-4 unit properties.
  • Modular or factory built housing.
  • HUD approved condos – walls in.

All types of properties are eligible for the FHA 203k include: HUD REO, short sale, distressed properties, and vacant homes.

FHA Limited 203k Financing

The FHA limited 203(k) is considered limited because costs for construction, repairs, and rehabilitation may not exceed $35,000 including all financing fees. The down payment is 3.5% and the minimum FICO credit score is 620.


The appraisals are “subject to repairs and improvements” will determine the after improved value, which will be ordered once:

  • The scope of work has been defined.
  • Work plan detailing proposed repairs or improvements.
  • Cost estimates are broke down by labor and material cost.
  • Contractors are chosen and provided required documents.


  • Borrower’s must select their own contractor and provide required documents.
  • A general contractor is not required, but the borrower is limited to three discreet trade persons.
  • A job that requires more than three will require a general contractor, which receives two draws.

Limited 203k Work Items

Eligible work items, but not limited to:

  • Eliminating health and safety hazards.
  • Repairing or replacing wells and/or septic systems.
  • Connecting public water and sewage systems.
  • Repairing/replacing plumbing, heating, AC and electrical systems.
  • Making changes for improved functions and modernization.
  • Eliminating obsolescence.
  • Repairing and installing new roofing, provided the structural integrity of the structure will not be impacted by the scope of work being performed including: gutters, siding, and downspouts.
  • Energy conservation improvements.
  • Making more accessible for people with disabilities.
  • Installing/repairing fences, walkways, and driveways.
  • Installing new refrigerator, oven, cook top, dishwasher, built in microwave oven and washer and dryer.
  • Repairing and removing in ground swimming pools.
  • Installing new smoke detectors.
  • Covering lead-based paint stabilization costs.

FHA Standard 203K Financing

The down payment for a FHA 203k is 3.5% and the minimum credit score is 640. The loan limit is up to the FHA county limit and the minimum repair amount is $5,000.


The appraisal is “subject to repairs and improvements” or “per plans and spec” that will determine the after improved work. The appraisal will be ordered once the HUD Consultant has been provided a detailed work write up and cost estimate.

Standard 203k Work Items

Eligible work items, but not limited to:

  • Converting a one family structure up to four.
  • Decreasing an existing multi-unit structure in one to four family structure.
  • Reconstructing a structure that has been or will be demolished, provided the complete existing foundation is not affected and will still be used.
  • Repairing/reconstructing or elevating an existing foundation where the structure will not be demolished.
  • Purchasing an existing a structure to another site, moving onto a new foundation and repairing/renovating it.
  • Making structural alterations such a repair or replace structural damage, additions to structures and finished attics and or basements.
  • Fixing, improving, or constructing a garage.
  • Eliminating health and safety hazards.
  • Installing/repairing septics and wells.
  • Connecting public water and sewage systems.
  • Repairing/replacing, heating, AC, plumbing, and electrical systems.
  • Improving functions and modernization.
  • Changing aesthetic appeal.
  • Repairing or adding roofing, gutters and downspouts.
  • Making energy improvements.
  • Improving accessibility for people with disabilities.
  • Installing and repairing fences, driveways, and walkways.
  • Installing a cook top, refrigerator, built in microwave, dishwasher, and washer and dryer.
  • Repairing/removing a in ground swimming pool.
  • Installing smoke detectors.
  • Making site improvements.
  • Landscaping.
  • Installing or repairing exterior decks, patios, and porches.
  • Constructing a windstorm shelter.
  • Covering led-based paint stabilization costs.


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Start by applying to get pre-approved today.

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