FHA 203k Renovation Loans
FHA 203k Renovation Loans
FHA 203k Renovation Loans—backed by the Federal Housing Administration—let you finance both the purchase (or refinance) of a home and its repairs/renovations in a single mortgage. The loan amount is typically based on the property’s estimated value after improvements (“after-improved value”). There are two main types: Limited (Streamline) for minor/cosmetic work (up to $75,000) and Standard for major/structural projects (minimum $5,000 in repairs, no upper limit beyond FHA county loan caps).
These are especially popular for fixer-uppers, as they’re more accessible than conventional options like Fannie Mae HomeStyle or Freddie Mac CHOICERenovation, particularly for borrowers with lower credit or smaller down payments.
Reasons to choose FHA 203k Renovation Loans
FHA 203(k) renovation loans stand out because it rolls your home purchase (or refinance) and renovation expenses into one convenient mortgage—with just a 3.5% down payment and a single closing—so you can tackle fixer-uppers without draining your savings.
30-year FHA 203(k) Renovation loan guidelines
To qualify for FHA 203k renovation loans, you will need:
Apply for FHA 203k Renovation Loans
Limited 203(k) (Streamline): For minor, non-structural repairs/improvements (e.g., painting, flooring, appliances, windows, minor plumbing/electrical, energy upgrades). Max renovation cost: $75,000 (updated in late 2024). No minimum required. Simpler process—no mandatory FHA consultant.
Standard 203(k) (Full): For major/structural work (e.g., roof/foundation fixes, additions, full remodels, accessibility mods, or even rebuilding if foundation remains). Minimum renovation cost: $5,000. No strict max (tied to FHA loan limits and after-improved value). Requires an FHA-approved 203(k) consultant for oversight.
On a typical FHA purchase or refinance, Scout Advisors can close in as little as 14 days. With a renovation loan, we suggest a minimum of 45 days (60 days is ideal) to allow sufficient time to shop contractors and to obtain renovation approval.
Typically work should be completed within 6 to 12 months from closing: Up to 12 months for Standard and 9 months for limited.
Eligible improvements are for the healthy & safety, kitchens, baths, additions, etc. Cannot be used for luxury items (hot tubs, pools, etc).
Generally no—must use licensed contractors (FHA-approved where required). Limited DIY may be allowed for very minor items in some cases, but most work requires professionals. No full owner-builder labor credit for the loan
