Perfect for fixer-uppers, FHA 203(k) (aka the home repair loan) is one of the most diverse home improvement loans available. The 203(k) allows you to build equity quickly—and you can use the loan for upgrades, remodels, or building a new structure on a home you own or will own. The 203(k) is ideal when upgrading your kitchen, creating your dream bathroom, installing new windows or appliances, finishing your basement, or laying new flooring.
Note that there are two types of 203(k) loans, each differing on how much you can borrow and what you can use it for. Limited FHA 203(k) is for renovations under $35,000, with only 3.5% down, and isn’t eligible for structural repairs. The standard FHA 203(k) is for renovations over $35,000 and requires a consultant to oversee renovations.
Interested in remodeling? Get in touch and learn more about FHA 203(k)!
*Terms provided are for illustrative purposes and are subject to credit qualification; not all borrowers may qualify and terms may change without notice. Not endorsed by the federal government. Please speak to a licensed loan originator for actual terms.
- The most diverse home improvement loan available
- Borrow up to 96.5% of the appraised value (value of the home plus renovations)
- Two-month reserves required
- Streamline 203(k) (only 3.5% down payment required)
- Full 203(k) (available for larger renovations)
- Use for upgrades, remodels, and building of a new structure on a house you own or will own.