An FHA 203K loan is also sometimes referred to as a renovation loan. It essentially allows you to either
purchase or refinance a home and add to the mortgage the cost of needed or wanted repairs –with a
single closing.

There are two kinds of FHA 203K Loans – Full and Streamline. A 203K Streamline Loan is the most
popular, used for cosmetic repairs or outdated characteristics of the home. For instance, roofing, septic
systems, appliances, even kitchen/bathroom remodels. A 203K Full Loan allows the buyer to make major
renovations such as structural repairs, demolition to an extent, as well as landscaping.

The main difference between full and streamline loans are that streamlines do not allow any structural
changes to be done to the house and have a fixed finance maximum which is $35,000. Whereas a full
203K loan allows you to make major structural changes and has a much higher max limit based on the
property’s location.


  • Great for those wanting to buy a fixer-upper without doing the work
  • Offers the ability to finance the purchase as well as the cost of remodeling
  • Down payment as low as 3.5% down
  • Avoids draining your savings or maxing out credit cards to cover repair


  • Not all properties qualify
  • Need a licensed contractor (you cannot repair your own home)
  • It can take longer to close a 203K loan
  • Not all lenders provide FHA 203K loans

Considering a 203K loan? Contact us to find out more information and to see how we can help you bring
your renovation dreams to life!