Turn a Fixer-Upper Into a Dream Home with an FHA 203k Loan
- By Jim Blackburn
- on
Client Profile
- Name: Lauren P.
- Age: 31
- Location: Kansas City, MO
- Home Type: 1940s Bungalow
- Purchase Price: $210,000
- Renovation Budget: $42,000
- Loan Type: FHA 203k Standard
- Down Payment: 3.5% of combined total
- Credit Score: 686
The Challenge
Lauren was ready to buy but couldn’t find a move-in–ready home in her price range. Every property she liked needed major work—new roof, HVAC, and kitchen updates. She didn’t have cash for both the down payment and the repairs.
Her agent mentioned something called an FHA 203k renovation loan, and that’s when she reached out to us.
The Strategy
We helped Lauren structure a 203k Standard Loan, which rolled the purchase and the renovation costs into a single FHA loan. Here’s how it worked:
- Total loan: $252,000 (purchase + renovation)
- 3.5% down on full amount = $8,820
- Used a licensed contractor for bid + draw schedule
- Renovation funds were escrowed and released in stages
- Monthly payment included both the house and renovation funding
The Outcome
- Lauren moved in after 5 weeks of upgrades
- Her home appraised for $265,000 after renovations, instantly adding equity
- She got a brand-new kitchen, HVAC system, roof, and fresh paint—all financed upfront
- She now lives in a home that feels custom, while still staying under budget
Quote from Lauren:
“I couldn’t afford a perfect house—but the 203k let me create one. Everything is updated, and I only had to make one mortgage payment.”
Ready to Take Your First Step?
Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.
- Takes just 5 minutes
- Tailored results based on your answers
- No credit check required
Need a Pre-Approval Letter—Fast?
Buying a home soon? Complete our short form and we’ll connect you with the best loan options for your target property and financial situation—fast.
- Only 2 minutes to complete
- Quick turnaround on pre-approval
- No credit score impact
Got a Few Questions First?
Related Posts
