How it works
A 203(k) loan rolls the price of a home and the cost of renovating it into a single FHA-insured mortgage. It's useful for fixer-uppers that wouldn't qualify for regular financing as-is.
Two versions
| Limited 203(k) | Smaller, non-structural projects such as kitchens, flooring, roofs and appliances, up to FHA's cap. |
|---|---|
| Standard 203(k) | Larger and structural work, with a HUD consultant overseeing the project. |
The home must be your primary residence, and work is done by licensed contractors with funds released as work is completed.
Questions
Can I do the work myself?
Generally no. 203(k) projects use licensed contractors, and funds are paid out as work is inspected.