How to Use an FHA 203k Loan to Renovate Your Dream Home
Love the Home—But Not the Condition? The FHA 203k Loan Might Be Your Solution.
Whether you’re buying a fixer-upper or upgrading your current place, the FHA 203k Renovation Loan lets you finance both the home and repairs with one mortgage. That means fewer closings, fewer headaches, and a lot more potential.
In this guide, you’ll learn how it works, what you can use it for, and how to estimate your project budget with our embedded calculator.
What Is an FHA 203k Loan?
The FHA 203k loan is a government-backed renovation mortgage that lets you finance:
- The purchase of a home, and
- The cost of repairs, upgrades, or improvements
It’s available in two versions:
- Standard 203k: For major structural repairs (foundation, additions, etc.)
- Limited 203k: For cosmetic repairs under $35,000
What Can You Use a 203k Loan For?
Common 203k Renovation Uses:
- Kitchen and bathroom remodels
- Roof, windows, HVAC upgrades
- Foundation repairs
- Flooring, drywall, plumbing
- Accessibility modifications
- Room additions
- Mold, termite, or structural repairs
Luxury upgrades like pools or outdoor kitchens are not allowed.
Who Qualifies for an FHA 203k Loan?
You must meet standard FHA guidelines:
- 580+ credit score
- 3.5% minimum down payment
- DTI under 57%
- Primary residence only
- Licensed contractor required for repairs
Self-employed? We have options. See our Bank Statement Renovation Loans.
Final Word: Don’t Settle—Transform.
With an FHA 203k loan, you don’t have to walk away from a home that just needs a little love. You can buy the vision, not just the structure—and turn “meh” into your masterpiece.
Schedule Your Free Renovation Loan Consultation
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?
Let’s talk it through. Book a call and one of our friendly advisors will be in touch to guide you personally.
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