Total Home Renovation with 203K Loan Before

Total Home Renovation with 203(k) Loan Before


Total Home Reno After

Total Home Renovation with 203(k) Loan After

Total Home Renovation with a 203(k) Loan

This is an example of an FHA 203(k) loan renovation on a home that needed a full renovation to fit the neighborhood standard. The finished home is 3,310 square feet, 4 bedrooms and 3 bathrooms. By the way, you may be interested in my previous post: Obsolete House and 203(k) Renovation Loan.

Details of Monthly Payments Added to the Loan Amount

While this property was being renovated, all of the monthly payments were financed in the loan amount. Therefore, the borrower did not need to make monthly payments while the contractor completed the necessary and desired renovations on the subject property. Thus, the borrower did not need to make two payments (one for the current living arrangements and the other on the subject property). The payments were added to the loan amount for six months, while completing the property. Then the borrower began making payments on his own, consistent with the loan terms.

The Borrower

The neighborhood was a highly desirable location for the borrower. However, the existing housing stock was too expensive and did not fit his personal or family needs, nor was it to his personal satisfaction. He preferred the renovation option, which was also the most affordable option. Thus, the borrower could get the house he wanted, in the location desired, at an affordable price.


The future value of this home far exceeded the Acquisition Cost of the property. Down payment was 3.5% of the Acquisition Cost. The borrower obtained the property of his dreams with substantial savings to the Down payment, monthly payment and Cost to Close the loan.


This location easily supported the renovation of this property. There was no deferred maintenance, or property condition problems on this home after all of the renovation were complete.

Final Outcome

The borrower is thrilled that he chose Renovation Financing. This location is perfect for his commute to work. And the neighborhood is ideal for his family. So the property meets all of his personal needs.

Have Questions?

Please call me to discuss any questions you may have in regards to your renovation project.

I look forward to working with you.

Related Articles