FHA 203k Loan

FHA Home Improvement 203k Loan


The FHA was founded to make home ownership more accessible for all citizens. Prior to the FHA, large down payments up to 50% were required which left banks with less risk and made it impossible for many to buy homes. Today FHA backed loans require as little as 3.5% down even with less than perfect credit. They offset the risk using mortgage insurance so the rates are also low. The whole idea is to help people own their primary residence so FHA loans are for single family homes of 4 or fewer units where the owner resides.


203k loans are suitable for any home improvement project on your primary residence costing more than $5,000. Projects that are less than $35,000 and do not change the structure of the building can be funded using a Streamlined 203k which requires less paperwork.


Standard 203k loans can be used for any renovations to the home. They can be used to purchase and repair an existing home such as a “fixer-upper.” They can also be used to refinance and repair your current home.


All FHA loans have certain requirements including debt to income ratio in the low 40s. Most lenders require at least a 580 FICO score and 620 is the baseline goal to get a good rate.

If you want to fix up your home or get a deal on a fixer-upper I can get you a quote. Call or text 904-671-6232 or apply online and I will get you set up.