FHA 203k vs. HomePath Renovation Loans: Differences Explained!

If you live in Grand Rapids or the surrounding areas, there are two mortgage programs that should definitely be on your radar: The FHA 203k Loan and the HomePath Renovation Mortgage. Both are government products aimed at helping home buyers purchase homes that “aren’t perfect” by financing the cost of making them perfect into the purchase loan.

Although both programs are very similar, they also have some differences. Information is listed below which may help explain some of the similarities and differences between the FHA 203k and the HomePath Renovation Loan options. For more information contact us today.


The below example illustrates anticipated cash to close on a $100,000 purchase.

203(k) vs HomePath Renovation

$3,000 Min. Down Payment $5,000

$3,500 Est. Closing Costs $3,500

$1,500 Est. Pre-paids $ 1,500

$ 0 LLPAs * $ 4,000

$8,000 or 8% (Total Estimated Closing Costs) $14,000 or 14%

* Both FHA 203k and HomePath allow the seller to pay up to 6% in seller paid concessions on an owner-occupied purchase. 2% for non-owner occupied HomePath loans.

**LLPA’s are Loan Level Pricing Adjustments. These are pricing adjustments to compensate for the level of risk in a loan.

Treadstone Mortgage fhavshomepath 300x300 FHA 203k vs. HomePath Renovation Loans: Differences Explained!

HomePath Renovation Features and Benefits:

  • 1- to 4-unit principal residence
  • 1-unit second home (max 85% LTV)
  • 1-to 4-investment properties
  • (maximum LTV – 80% for 1-unit; 70% for 2-4 units)
  • Most property types, including condos
  • No manufactured housing

Treadstone Mortgage 203kspecialistlogo 300x179 FHA 203k vs. HomePath Renovation Loans: Differences Explained!


FHA 203k Features and Benefits:

  • Owner-Occupied Purchases and Refinances
  • 10-20% contingency reserve required on all 203ks
  • Finance up to 110% of the after-improved value!!!
  • Regular FHA guidelines and ratios apply
  • A great solution for “as-is” properties
  • 1-4 families including FHA approved Condo’s and Mixed-use Properties

So all in all, both the FHA 203k loan and the HomePath Renovation mortgage are both great options for people looking for a renovation loan in West Michigan. Call us today, and we will help determine the best program for your specific situation.


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  1. Do you do 203k loans? We saw your video (MI HomeBuyingProcess) and are interested in a home that is a short sale, but would never pass an FHA inspection.

    We are looking for more information and possibly applying and making an offer on this particular house.

    Thanks in advance

    Steven & Amy Blodgett