FHA 203 (k)


The FHA 203(k) loan allows a borrower to purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the projected market value of the property when all repairs are completed.

An important tool for community and neighborhood revitalization, the FHA 203(k) loan offers flexible qualifying and low down payments:

  • FHA standard guidelines
  • FHA down payment (3.5%)
  • Flexible credit qualifying
  • Purchase or Refinance and renovations all in one loan
  • Purchase mortgages based on after improved value
  • One closing and then repairs begin

Eligible Repairs:

  • Changes for improved functions and modernization
  • Elimination of health/safety hazards
  • Changes for aesthetic appeal
  • Plumbing, heating air conditioning and electrical upgrades
  • Well and/or septic repairs
  • Roofing, gutters and downspouts
  • Flooring, tiling and carpeting
  • Energy conservation improvements
  • Access for the disabled

One Valuable Program with Two Great Options:

  • The Limited Option is available for smaller or simpler scenarios where the total cost of renovations adds up to $35,000 or less. There is no minimum dollar amount of repairs or improvements required.
  • The Standard Option is available for larger projects that are more than $35,000 or contain structural work (load bearing walls, etc.). This option requires the expertise of a trained HUD Consultant to help supervise the project. There is no limit on the total dollars you can spend, however FHA loan limits apply).
  • Loan terms for both options are the same; the only difference is the scope or nature of the work being completed.
  • Most homes can be completely remodeled in 60 days or less, but for larger projects you have up to six months to complete your dream renovations.

What type of repairs does a 203(k) loan cover?

  • Roofs, Gutters, Down Spouts
  • Heating and Cooling Systems
  • Plumbing and Electrical Systems
  • Kitchen and Bathroom Remodeling
  • Basement Remodeling
  • Expanding Attics
  • Room Additions and Garages
  • Window and Door Replacement
  • Carpet and Flooring
  • Painting and Siding
  • Appliances
  • Mold and Lead Paint Abatement
  • Foundation and Water Damage
  • Well and Septic Systems
  • Contact your HomeBridge Mortgage Loan Originator for a detailed list

Why should I use an FHA 203(k)?

  • Save money on utility bills and maintenance cost (make home ownership more affordable)
  • Save on out-of-pocket costs
  • Increase a home’s resale value (build immediate equity)
  • Address any potential health and safety issues in your home.
  • Improve the comfort and enjoyment of your home
  • Take advantage of government-sponsored incentives designed to lower the cost of home ownership.

What makes HomeBridge different from other 203(k) lenders?

  • HomeBridge processes, underwrites, closes and administers all the renovation draws.
  • HomeBridge Concierge Service will assist each home buyer / home owner with questions, concerns and more so you are never left feeling out of control or uninformed.
  • HomeBridge has a trained Specialist in your local market to assist you to pick the right options to meet your personal goals and objectives.
How It Works

A Step-by-Step Guide to Finding, Purchasing and Renovating a Home.


Apply for a mortgage with one of HomeBridge’s 203(k) Certified Loan Originators. We will review your application and loan documents to pre-approve you for a maximum payment amount and determine the best loan program to fit your needs.

Find Your Home

Look for a home that you can customize to become your dream home. The contract between you and the seller will be just for the purchase price. It will not include the funds to be used for your home improvements. Your Realtor will forward the accepted contract to your Loan Originator to finalize the financing.

Choose a Contractor

You must research and select a contractor to complete your improvements after the loan closes. Contractors must provide specific documentation to be accepted for use in the renovation program.

Purchase Your Home

HomeBridge processes, underwrites and closes your loan in-house. You will go to settlement on your new home with an Escrow account established to complete your home improvement project.

Renovations Complete

Once your loan closes, your personal HomeBridge Renovation Concierge Manager will work with you and your contractor. This Manager will monitor the renovation process and distribution of funds, and is available to answer all of your questions. Most customers have this process completed within 60 days of closing (smaller projects can be completed in less than 30 days).