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REFINANCE AND RENOVATION

FHA 203(k) renovation loans

A 203(k) may combine an eligible purchase or refinance with funds for approved rehabilitation.

A useful starting pointEvery mortgage has its own terms, costs, and qualification requirements. Use this overview to prepare questions and compare written loan estimates.

THE OVERVIEW

How this option works

The FHA 203(k) program insures a mortgage that can cover the purchase or refinance of an eligible home together with rehabilitation costs. Renovation funds are generally managed through a lender-controlled process as work is completed.

There are Standard and Limited 203(k) options with different project scope and process requirements. Plans, costs, contractors, property eligibility, inspections, and program rules all need review before the financing is finalized.

MAKE THE CONVERSATION COUNT

Questions to ask

Ask for the details in writing and compare the total cost, payment, and terms for your own scenario.

  • Is the property and planned work eligible under current FHA rules?
  • What plans, bids, consultant involvement, inspections, and contingency funds are required?
  • How and when are renovation funds released?
General information only. Program rules, rates, and lender availability can change. This page is not an offer, approval, or personal recommendation. Review current written terms with a qualified mortgage professional.

Official information: HUD: 203(k) Rehabilitation Mortgage Insurance Program ↗