203k Loan

Get a 203k Loan for Home Remodeling Assistance

FHA 203k loans are essentially loans you can apply for if you’re renovating your home. Whether you’ve purchased a fixer upper to remodel and resell or you or you want to make it your forever home, FHA 203k Loans exist so that you can make these renovations. Here’s a look at how 203k loans work.


What is an FHA 203k loan?

FHA 203k loans are loans backed by the federal government given to buyers who want to purchase an older and/or damaged home and make repairs to it. There are 2 types of FHA 203k loans:

  • Regular or Standard 203k. This is provided for properties that need structural repairs, remodeling, a new garage, or landscaping. The minimum amount you can borrow with a regular FHA 203k loan is $5,000.
  • Streamlined or Limited 203k. This loan is given for home’s that need improvements that will help the home be more energy-efficient, such as new roofing, appliances, or non-structural repairs like painting. With streamlined 203k loans, you can obtain as much as the purchase price of the home plus an additional $35,000 to cover energy-specific improvements.

How do FHA 203k loans work?
If you’re buying a home that requires mandatory upgrades in order to make it livable, a 203k lender will provide you with the money needed to buy or refinance the home, plus the money needed to complete those renovations.

Typically, 203k loans also include a 20% contingency reserve, which covers any additional expense the repairs and remodeling services cost outside of what was estimated. 203k loans can also include a provision that gives you 6 months of mortgage payment to live elsewhere while renovations are happening. In this way, you’re able to live somewhere comfortably and still make mortgage payments on your new home.

Does my fixer upper qualify for an FHA 203 loan?
If your home requires repairs that will make the house more energy efficient or absolutely necessary upgrades, like a functional kitchen or bathroom, you will most likely qualify for a 203k loan. Some other common types of repairs that an FHA 203k loan will cover include: decks, patios, flooring, plumbing, siding, additions, and heating and cooling systems.
Your home qualifies for an FHA 203k loan if:

• It is a 1-4 family home recently finished
• It is a home that’s been torn down with the existing foundation still in place
• It is an existing home you want to move to a new location

Renovations deemed “luxury improvements,” like adding a pool or fitness area to your property, are not covered by this program. Similarly, any improvements made that aren’t a permanent part of the property are excluded from 203k loan coverage.

Confused about whether or not you qualify for an FHA 203k loan? Remodeling Concepts can help! We can help you obtain the right loan through banks offering them to use for our remodeling services.

Remodeling Concepts
1095 Wood Lane, Langhorne, PA 19047

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