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FHA-backed loan that finances both the purchase of a home and the cost of renovations in a single mortgage. Ideal for buying fixer-uppers or upgrading your current home.
An FHA 203(k) loan is right for you if you want to buy a fixer-upper and finance both the purchase and renovation in a single mortgage. It is also available for homeowners who want to refinance and roll renovation costs into their loan with as little as 3.5% down.
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Min Credit Score
580+
Min Down Payment
3.5%
Max LTV
96.5%
Max DTI
50%
Loan Limits
Subject to FHA county loan limits
PMI / MIP
FHA MIP: 1.75% upfront + 0.55% annual
Occupancy
Primary residence only
We evaluate the property, discuss your renovation plans, and determine whether a Standard or Limited 203(k) is appropriate. A HUD-approved consultant may be assigned for Standard 203(k) loans.
Submit your application with renovation plans, contractor bids, and the required work write-up. The HUD consultant (for Standard 203(k)) reviews and approves the scope of work.
The appraiser provides both an as-is value and an after-renovation value. The underwriter reviews your financials and the renovation plans. The loan is based on the after-renovation value.
Close on the property and renovation funds are placed in escrow. Contractor draws are released as work progresses, with inspections at each stage. Renovation must be completed within 6 months.
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.
Explore other loan products that might be a good fit for your needs.
Government-backed loans insured by the Federal Housing Administration. Designed for first-time homebuyers and those with lower credit scores or smaller down payments.
A traditional mortgage not insured by the federal government. Ideal for borrowers with strong credit and stable income who want competitive rates and flexible terms.
California Housing Finance Agency programs that provide down payment and closing cost assistance to first-time homebuyers. Includes the MyHome Assistance Program and Zero Interest Program (ZIP).
Apply online in minutes or call us to speak with a loan advisor about your FHA 203(k) options.
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.
These FAQs are generated with AI assistance and reviewed periodically. For personalized advice about your specific situation, please call us or apply online.