FHA 203k Renovation Home Loan

Buy or Refinance a home with your FHA loan and get the financing required to repair, make modifications, or additions to your home.

FHA 203(k) Renovation Loan. What is it?

A FHA 203(k) Renovation Home Loan is financing for a home purchase or refinance that allows you to finance improvements, modifications, and additions to a home.

This type of financing is used often to make a home ready for a disabled veteran, fix a home that needs work before occupancy, increase the efficiencies of a home, build an addition, finish a garage etc.

There are two main considerations:

The home needs to appraise for enough in value to cover the cost of the new loan balance with improvements.
The Contractor must be HUD approved. It can not be your cousin. We have a list of HUD approved Contractors.

Call us to discuss your project and we can set expectations for using a FHA Renovation loan. 719-362-0439

FHA and VA Renovation Loans are almost identical. This video describes the loan.

What you CAN do with a FHA Renovation Loan

Roof Repair or Replacement.

You can repair or replace all parts of your roof system using the FHA 203(k) Renovation Home Loan. This includes gutters and down spouts.

Health and Safety Hazards

You can repair or replace Health and Safety Hazards such as hand railings, electrical covers and more using the FHA 203(k) Renovation Home Loan. There are some items to consider before financing this type of repair.

Structural Repairs or Additions. Under $100,000

If repairs or the addition costs are under $100,000 you can use the FHA 203(k) Renovation Loan to finance those additions or structural repairs. This includes new garages, finishing attic spaces, repair termite damage, etc.

Handicap and Disability Improvements.

You can use the FHA 203(k) Renovation Loan to install or modify the home to make it more accessible to disabled Veterans. For example, you can increase wheelchair accessibility, install ramps, open up doorways and in some cases install an elevator.

Convert a Single Family to 2-4plex or Reduce the number of units in a home. Under $100,000

If conversion is under $100,000 you can use the FHA 203(k) Renovation Loan to finance converting a single family home into a 2, 3 or 4 plex. You can also convert a multi-family building like a 5-6 unit building into a 1-4 unit multi-family.

Bathroom or Kitchen Remodel

You can use the FHA 203(k) Renovation Loan to remodel your bathrooms or kitchens.

Well Repair or Replacement.

You can repair or replace a Well using the FHA 203(k) Renovation Home Loan. There are some items to consider before financing this type of repair.

Septic or Sewer Repair or Replacement.

You can use the FHA 203(k) Renovation Home Loan, to repair or replace your septic or sewer systems.

Window Repair or Replacement

You can use the FHA 203(k) Renovation Loan to repair, upgrade or replace windows in the home.

Major Landscaping that Increases Value. Under $100,000

If you have a landscaping project that will increase the value of the home, it is possible to finance it with the FHA 203(k) Renovation Home Loan.

Plumbing, Electrical or HVAC

You can repair, upgrade, or replace your plumbing, electrical, heating and air-conditioning systems using the FHA 203(k) Renovation Home Loan.

House Painting Interior or Exterior

No need to worry about chipped and peeling paint. You can use the FHA 203(k) Renovation Loan to paint the entire interior and exterior of a home.

Speak to a Loan Officer today to discuss your project.

719-362-0439

Consult with a Loan Officer

FHA 203(k) Renovation Home Loan

Use your FHA Home Loan to buy a home that needs repairs in order to meet FHA guidelines or improvements you need to use the home.

Use your FHA Home Loan to renovate, repair, improve or convert your home to suit your needs.

What you CAN NOT do with a FHA Renovation Loan

Any project that requires more than 6 months to complete.

Any project that has a scope that is anticipated to take more than 6 months to complete cannot use a FHA 203(k) Renovation loan. Different financing will need to be used.

Convert the Home into a Commercial Property

You cannot use the FHA 203(k) Renovation Home Loan to finance the conversion of a residential property into a mixed use or to a commercial property. It may be possible to convert from a commercial to a residential property. Call us for options.

TV Antennas, Satellite Dishes, Photo Murals, and other Decorative Ideas.

You need to do these things on your own. The FHA 203(k) Renovation Loan is not able to finance these improvements.

New Swimming Pool or Tennis Court

You can repair a swimming pool, but you cannot install a new pool or tennis court. Swimming pool providers have their own financing and it is best to use theirs for pools or Tennis Courts.

Structural Repairs or Additions over $100,000

If repairs are over $100,000, you cannot use the FHA 203(k) Renovation Loan to finance home additions or structural repairs.

Moving Structure to a New Foundation

You cannot move your home to a new foundation. Yes, this is a thing, where people will move their house to a new foundation on a different property, but this is out of the scope of a FHA 203(k) Renovation Loan.

Room Additions or New Construction over $100,000

Room additions or new construction of outbuildings, such as a detached garage or shop, needs to stay below $100,000 for the total scope of the project.

Barbeque Pits, Outdoor Fireplaces, Tree Trimming.

These are not allowed to be financed. These are typically low cost improvements.

How It Works

It only takes about 30 to 60 minutes to fully pre-approve most buyers for a home purchase or refinance.

Give us a Call

Call us to discuss your specific scenario.
1 (719) 362-0432
7am-10pm MT. 7 Days a week

Step 1

Fill out an Application

Use our online portal to fill out an application.
TIP: Use your computer not your phone.

Apply Online

Step 2

Upload Documents

We will request a few documents though the portal needed to prove income, work history, assets, etc.

Online Portal

Step 3

You're Pre-Approved!

Congratulations, you are pre-approved! Use your pre-approval to buy or refinance your home.

Step 4

List of Important Items

Purchase Considerations for Realtors

Contracts for new purchase need to be 45-60 days, we prefer 60 days.
Sellers need to be flexible with potential 3rd party delays.
Home needs to appraise (ARV) for more than the cost of improvements.
Contractors need to be HUD approved (We have access to the list of HUD approved contractors).
Projects up to $100,000 in repairs are relatively easy and fast.
Projects from $100,000 to $200,000, and $200,000+ have different rules.

Refinance Considerations for Homeowners

Financing can take upwards of 45 days.
Work with your contractor to get costs and scope together quickly
Home needs to appraise for more then the cost of improvements.
Contractors need to be HUD approved (We have access to the list of HUD approved contractors).
Projects up to $100,000 in repairs are relatively easy and fast.
Projects from $100,000 to $200,000, and $200,000+ have different rules.