FHA 203(k) Loans

what is an FHA 203(k) loan?

What happens when you find the home of your dreams – or, at least, it has the potential to be the home of your dreams – but it needs some repairs or modernization?

With one loan, you can buy your new house and make renovations or repairs to the home. FHA 203(k) loans are also available as a refinance option for those who want to finance repairs or renovations in their current home.

The FHA 203(k) loan may cover many large projects, such as remodeling a kitchen or adding a patio. However, it doesn’t cover luxury renovations, such as adding a pool or a basketball court.

Other eligible renovations include, but are not limited to:

  • Structural repairs
  • Remodeling
  • Additions to the home
  • Landscaping
  • Adding heating or air conditioning systems

benefits of FHA loans

FHA 203(k) loans are backed by the Federal Housing Administration (FHA), which means lenders can offer these loans with more flexible requirements – like lower credit scores or smaller down payments.

Repeat buyers can take advantage of these loans too, but first-time homebuyers often find them particularly helpful to get started. You don’t have to have hundreds of thousands of dollars in reserve or a perfect credit score to become a homeowner!

The FHA 203(k) loans are the best of both worlds – with a low down payment and flexible credit requirements, homeownership is more affordable and accessible, but if you want to make some tweaks to make your new home your own, you can finance that too.


All loan requests are subject to credit approval as well as specific loan program requirements and guidelines.