FHA 203(k) Loan: Finance Your Home Purchase and Renovation in One Loan
Quick Facts
- One loan for purchase + renovation
- Low down payment
- Flexible credit guidelines
- Standard and Limited 203(k) options
- Ideal for fixer‑upper homes
What Is an FHA 203(k) Loan?
An FHA 203(k) Loan combines the cost of buying a home and the cost of renovations into one mortgage. This program helps buyers and homeowners finance repairs, upgrades, or full remodels with flexible FHA guidelines and a low down payment.
FHA 203(k) Loan Benefits
- Finance purchase and renovation in one loan
- Low down payment
- Flexible credit and income requirements
- Covers repairs, upgrades, and major improvements
- Standard and Limited 203(k) options available
FHA 203(k) Loan Eligibility Requirements
- Property must be a primary residence
- Acceptable credit history
- Stable income and employment
- FHA appraisal required
- Renovation work must meet FHA guidelines
- Licensed contractor required for repairs
How an FHA 203(k) Loan Works
The FHA 203(k) Loan provides funds for both the home purchase and renovation costs. Borrowers submit contractor bids, complete an FHA appraisal, and close on a single mortgage. Renovation funds are held in escrow and released as work is completed.
Ready to see your loan options? Start below — fast, secure, and no credit impact.