203k Loans for Renovation and Home Improvement
A 203k loan helps you buy or refinance a home and roll renovation costs into one mortgage. It’s an FHA-backed program designed for buyers who want to improve a property — whether it needs light updates or major repairs. With one closing and a simple structure, 203k loans offer a streamlined solution for turning a fixer-upper into your dream home.
How 203k Loans Work
Unlike traditional loans that require the property to be move-in ready, 203k loans allow you to finance both the purchase price and repair costs together. This makes it easier to buy homes other buyers overlook — and gives you the funds to customize it the way you want.
There are two types of 203k loans:
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Limited 203k: For minor upgrades like flooring, appliances, or cosmetic changes
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Standard 203k: For major structural repairs, room additions, or complete remodels
Why Choose a 203k Renovation Loan?
A 203k loan can be the ideal solution if:
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You’re buying a home that needs work
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You want to refinance and fund improvements
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You’re priced out of move-in-ready homes
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You’re willing to invest sweat equity for long-term value
This loan option helps you break into neighborhoods you love — even if homes need work. It also boosts your home’s value from day one.
What Can You Use It For?
A 203k loan covers a wide range of updates, including:
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Roof or HVAC replacement
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Kitchen and bath remodeling
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Energy-efficient upgrades
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Structural repairs and safety issues
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Accessibility improvements
Some luxury items may not be eligible, but we’ll help you create a renovation plan that fits FHA guidelines.
What to Expect During the 203k Process
The 203k loan process involves a few extra steps compared to a standard FHA mortgage, but we’ll guide you through every phase. You’ll work with a HUD-approved consultant to create a renovation plan and cost estimate. Once the loan is approved, funds for repairs are held in escrow and released as the work is completed. Because everything is bundled into one loan, you avoid juggling separate financing or credit cards to cover renovations. This structure makes it easier to budget and stay on track — without surprises.
Why a 203K Loan?
The main benefit of these loans is that they give you the ability to buy a home in need of repairs that you might not otherwise have been able to afford to buy. Plus, the down payment requirements are minimal, and often you get decent interest rates.
- Fixed Rates
- Adjustable Rate Mortgage (ARM)
- Minimal Down Payments
- Terms from 5 to 30 Years