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Ready to start your home buying journey? Apply now and get pre-approved for your mortgage.
Purchase Rates
Know the rates, know your options. Start building your homeownership plan today.
Monthly Mortgage Calculator
Get a clear picture of your monthly mortgage payment using your rate, credit score, and down payment information.
Affordability Calculator
Not sure what fits your budget? This calculator factors in your income, debts, and down payment to help you find the right price range.
Refinance
Apply Now
Ready to lower your rate or tap into your equity? Apply now and start your refinance journey with confidence.
Refinance Rates
Rates can change fast. See today’s options and discover potential savings on your mortgage.
Refinance Mortgage Calculator
Wondering how refinancing will affect your monthly payments? See how much you can save.
Cash-Out Refinance Calculator
See how much equity you can tap into. Estimate your new mortgage payment and compare loan options.
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Calculators
Free, interactive mortgage calculators that can help you along the journey toward your home ownership goals.
Blog
Learn more. Stress less. Our blog breaks down what you need to know to buy, refinance, or plan ahead.
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Check out our FAQs to learn more about Total Mortgage, mortgage lending, home refinancing, and more.
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About
FHA 203k Mortgage Loan
FHA 203k loans make it easy for borrowers to purchase and remodel homes, including foreclosed and distressed properties.
Combined Purchase and Renovation
Lenient Qualifications
Lower Interest Rates
Flexible Use of Funds
FHA 203(k) Home Renovation Loan Information
The FHA 203(k) loan helps buy or refinance a residential property while including the renovation costs in the mortgage. To better understand how this unique loan program can help you achieve your homeownership and renovation goals, you can start by speaking to one of our seasoned experts.
Types of FHA 203(k) Loans
- Limited FHA 203(k) loans: For minor repairs and upgrades up to $35,000.
- Standard FHA 203(k) loans: For major renovation projects with a minimum of $5,000 in repairs.
Eligible Projects
FHA 203(k) loans can be used for various improvements, including:
- Energy-efficient upgrades
- Accessibility improvements for disabled family members
- Landscaping
- Flooring replacement or installation
- Roof, gutter, and downspout repairs
- Plumbing and sewer system rehabilitation
- Removing health and safety hazards
Loan Requirements
- Minimum credit score: 500 (some lenders may require higher)
- Down payment: 3.5% (credit score 580+) or 10% (credit score 500-579)
- FHA-approved contractors must complete the work
- Renovations must start within 30 days of loan closing
- Work must be completed within 6 months
Pros and Cons of FHA 203(k) Loans
Understanding the advantages and disadvantages of an FHA 203(k) loan can help you make an informed decision.
Additional Pros
- Lower credit score requirements
- Lower down payment options
- Can cover mortgage payments if home is uninhabitable during renovations
- Allows purchase of fixer-upper properties
Cons to Consider
- Limitations on types of renovations allowed
- Requires FHA mortgage insurance
- Cannot be used for investment properties
- Requires working with FHA-approved contractors and consultants
- More complex and potentially longer closing process
Frequently Asked Questions
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