FHA 203(k) Standard & Limited

The FHA 203(k) rehab loan is a cost-effective loan which allows a buyer to finance nevessary repairs or desired home improvements with a minimum 3.5% down payment FHA loan. It allows a single loan to simplify a purchase or refinance along with financing renovations. It's a great option for a property that needs a little work and the buyer doesn't have the cash to pay for improvements. There are two types of 203(k) Rehab loans: Standard and Limited.

FHA 203(k) Standard

FHA 203(k) Limited

Allows borrowers to purchase or refinance with 1 loan without extra expense of interim financing
Allows borrowers to roll in the cost of repairs and improvements, up to 110% of the after-complete value of the home with a minimum 3.5% down payment
Rehabilitation/Renovation begins after loan closing

FHA-insured loan with a minimum 3.5% down payment
Maximum loan amount is the county’s FHA loan limit
Available only for owner-occupied primary residences
Project deadlines and reserves may apply based on 203(k) option

Minimum Credit 640
Maximum term for renovation is 6 months
Primary Residence/Owner Occupied
Property must be at least 1 year old with certificate of occupancy or equivalent
Manufactured homes are NOT allowed
Purchase & Refinance transactions allowed

FHA 203(k) Standard & Limited

Benefits

Highlights

Eligibility and requirements

Loan Types