FHA 203(k) Limited

The FHA 203(k) limited program is designed for non-structural repairs up to a maximum of $35,000 in total renovation costs—this includes the contingency reserve and any additional fees. This is an excellent loan for your clients that have a home with a significant renovation that restricts the ability to move-in immediately. With the right expert assistance and loan, the property can be move-in ready after renovations. These programs are available for Purchase and Refinance.

  • $5,000–$35,000 in total renovation costs
  • Ideal for minor renovations including appliances and cosmetic repairs

Types of repair

  • Eliminating health and safety hazards to meet HUD’s minimum property requirements (MPRs)
  • Repair/replacement of roof including siding gutters and downspouts
  • HVAC systems, plumbing and electrical systems
  • Exterior decks, patios, porches provided dollar for dollar increase in As-Is Property Value
  • Minor remodeling not involving structural repairs (i.e. kitchen)
  • Purchase/installation of appliances
  • Accessibility improvements for persons with disabilities
  • Lead based stabilization or abatement of lead based paint hazards for property built prior to 1978
  • HVAC systems, plumbing and electrical systems
  • Septic system and/or well repair or replacement
  • Pool repairs
  • Installation/repair of fences, walkways and driveways

FHA 203(k) Standard (Program Temporarily Suspended)

The standard program is for all projects > $35,000 or homes requiring significant renovations, such as structural changes, room additions, or improvements that make the home uninhabitable during construction.

  • Major renovations
  • > $35,000 in total renovation costs
  • May include structural repairs

Types of repair

  • Major remodeling or structural repairs/alterations
  • Eliminating health and safety hazards to meet HUD’s minimum property requirements (MPRs)
  • Septic system and/or well installation, repair or replacement
  • Connection to public water and/or sewer
  • HVAC systems, plumbing and electrical systems
  • Improved functions and modernization
  • Windstorm shelter
  • Lead based stabilization or abatement of lead based paint hazards for property built prior to 1978
  • Roof including siding gutters and downspouts
  • Installation/repair of fences, walkways and driveways
  • Accessibility improvements for persons with disabilities
  • Repairing or removing an in-ground swimming pool installation of built-in appliances
  • Site improvements such as installation/repair exterior decks, patios, porches provided dollar for dollar increase in As-Is Property Value

HomeStyle® Renovation

There are two types of HomeStyle® transactions available:

  • Up to $50,000 in total renovation costs including contingency reserve and any additional fees – Designed for non-structural repairs and allows for two draws
  • Projects >$50,000 in total renovation cost including contingency reserve and any other expenses – Homes requiring any significant renovations, such as structural changes/room additions and allows up to five draws
  • Up to $50,000 in total renovation costs
  • Flexible for minor or major renovations
  • Perfect for good to great credit Borrowers

Property Eligibility

  • One- to four-unit principal residences, one-unit second homes, or one-unit investment properties, including units in condos and PUDs

Program Eligibility

  • Conforming and High Balance up to FNMA loan limits
  • Fixed Rate Terms: 15, 20, 25, and 30 Year Fixed Rate Terms
  • ARM Terms: 5/1, 7/1, and 10/1
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