FHA 203k: Home Rehab Loan

You can buy a home with a low down payment, and, in addition to the purchase price, receive additional funds to correct deficiencies with the home or just use the additional funds to improve the home (not only for required repairs). It’s called the FHA 203k.

There are two versions of this loan product:

  • 1. A 203k streamline loan (limits the nature of the repairs and the maximum additional funds to $35,000)
  • 2. A standard 203k loan – While there are still some minor limitations with this program, you can borrower up to the maximum county loan limit with this program.

Maximum FHA loan limits can be found here: https://entp.hud.gov/idapp/html/hicostlook.cfm

While you can use funds from these loans to make required repairs (missing AC units, leaky roofs, etc.), you can also use the funds for updates/upgrades that are not necessarily “required.” For example, if you want to paint the house a different color, buy new appliances, install new doors, etc., you can finance that into the loan, so long as the home’s after-repaired/improved value appraises for the purchase price plus your construction escrow account balance.

Renovations to Consider:

  • Painting
  • Flooring, Carpet or Tile
  • Mold Remediation
  • Chinese Drywall Remediation
  • Appliances
  • Air Conditioning
  • Additions / Expansions
  • Well & Septic
  • Plumbing
  • Electrical
  • Handicap Accessibility
  • Attached/Detached Garage
  • Insulation
  • Roofs, Gutters, Downspouts
  • Up to $1,500 repairs to an existing pool
  • Energy Efficiency Upgrades
  • Termite Damage
  • Exterior Siding, Windows and Doors


Due to effects of COVID-19, we have
temporarily suspended our 203k program

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