Loading...
Loading...
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. Insured by the FHA under HUD Handbook 4000.1, this program accepts credit scores as low as 580 with a maximum LTV of 96.5% and DTI up to 50%. The Standard 203(k) covers major renovations exceeding $35,000 including structural work, while the Limited 203(k) handles minor repairs up to $35,000. FHA MIP applies at 1.75% upfront plus 0.55% annually, and loan amounts follow FHA county limits set by HUD. All work must be completed by licensed contractors. Compared to taking out a separate home equity loan for improvements, the 203(k) finances everything in one mortgage with one closing. Choose the 203(k) if you see potential in a home that needs work and want to build instant equity through improvements.
Min Credit Score
580+
Min Down Payment
3.5%
Max LTV
96.5%
Max DTI
50%
Loan Limits
Subject to FHA county loan limits (per HUD)
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.
NetCORE Lending™ is headquartered in Diamond Bar and has been helping borrowers across the San Gabriel Valley secure fha 203(k) financing since 2015. We serve homebuyers and homeowners in Pomona, Walnut, Rowland Heights, West Covina, Chino Hills, Covina, La Verne, Glendora, San Dimas, Hacienda Heights, and City of Industry — as well as borrowers throughout California.
As a local mortgage broker, we understand the San Gabriel Valley real estate market — from the higher-value properties in Chino Hills and Diamond Bar to the more affordable options in Pomona and West Covina. Our team provides bilingual service in English and Vietnamese and shops 100+ wholesale lenders to find you the lowest available rate on your fha 203(k) loan.
Call (714) 399-6361 to discuss fha 203(k) options with a local loan advisor, or get pre-qualified online in 2 minutes.
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.
Official Sources
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.
Reviewed by Joann Ton, Loan Officer (NMLS# 1461031) | Last updated: June 2026
These FAQs are generated with AI assistance and reviewed periodically. For personalized advice about your specific situation, please call us or apply online.