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Rehabilitation / Fixer Upper Loans

FHA 203(k) Loan on a clip board with a fountain pen and a set of keys next to a calculator

What is a 203K Loan?  The FHA 203K Rehab loan is a cost-effective loan which allows a buyer to finance necessary repairs and or desired home improvements while utilizing a 3.5% down payment FHA loan. It allows a single loan to facilitate a purchase or refinance along with financing renovations. It’s the perfect program for a property that needs a little work and the buyer doesn’t have the cash to pay for improvements.  

You can use a FHA 203(k) Rehab Home Loans to turn your "Almost Perfect" Home into your Dream Home. If you want to buy a home that needs repair or finance needed repairs to your current home, the Section 203(k) loan program by the U.S. Department of Housing and Urban Development (HUD) may be a good option for you. This program allows you to finance the purchase of a house—or refinance your current mortgage—and include the cost of its repairs through a single mortgage. 

Eligible property types are: single family detached homes, single family attached (like row houses) town homes and condominiums. Cooperatives (Co-ops) are not allowed. 

Types of Improvements Include:  

  • Repair/Replacement of roofs, gutters and downspouts  
  • Repair/Replacement/Upgrade of existing HVAC systems, plumbing and electrical systems  
  • Repair/Replacement of flooring  • Minor remodeling, such as kitchens, which does not involve structural repairs  
  • Painting, both exterior and interior  • Weatherization, including storm windows and doors, insulation, weather stripping, etc.
  • Lead-based paint stabilization or abatement of lead-based paint hazards
  • Repair/Replace/Add exterior decks, patios & porches  
  • Basement finishing and remodeling, which does not involve structural repairs.
  • Basement waterproofing  
  • Window/door replacement and exterior wall re-siding  
  • Septic system and/or well repair or replacement  

Note: Structural alterations and luxury items such as swimming pools and barbecue pits are not eligible. The Section 203(k) Loan Program - Turning “Fixer-Uppers” into Dream Homes (Lender guidelines apply). 


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