🔧 How FHA 203(k) Loans Help You Buy a Fixer-Upper 🏡

🏚️ FHA 203(k) Rehab Loans Explained: Renovate & Buy with One Mortgage 🛠️

July 24, 2025•2 min read

🏚️ FHA 203(k) Rehab Loans Explained: Renovate & Buy with One Mortgage 🛠️

🔧 How FHA 203(k) Loans Help You Buy a Fixer-Upper 🏡

FHA 203(k) Rehab Loans Explained: Buy & Renovate with One Loan

Thinking about buying a fixer-upper? Don’t have the cash to renovate and buy at the same time? Enter the FHA 203(k) loan — the perfect solution for homebuyers looking to buy and renovate with one affordable mortgage.

What Is an FHA 203(k) Loan?

An FHA 203(k) loan is a government-backed mortgage that allows buyers to purchase (or refinance) a home and roll the renovation costs into a single loan. These loans are insured by the Federal Housing Administration (FHA) and designed to help revitalize older homes, making them move-in ready — or custom to your style.

There are two types of FHA 203(k) loans:

Standard 203(k): For major renovations over $75,000, including structural repairs.

Limited 203(k): For smaller projects under $75,000, such as kitchens, bathrooms, flooring, or roofing.
· $5000 in repairs is the minimum amount needed to be escrowed to be eligible for either 203K version.

Who Should Consider a 203(k) Loan?

· First-time homebuyers who can’t afford a turnkey home.

· Buyers looking for homes in up-and-coming neighborhoods.

· Investors purchasing properties to rent (owner-occupant required).

· Homeowners who want to refinance and renovate.

Benefits of FHA 203(k) Loans

✅ One Loan, One Payment: Buy and fix up with a single monthly payment.
✅ Low Down Payment: Just 3.5% down (if you qualify).
✅ Flexible Credit Guidelines: Perfect for borrowers with limited credit history.
✅ Build Equity Fast: Renovations can boost property value right away.
✅ Government-Backed Confidence: Lenders are more willing to approve your deal.

What Can You Use It For?

· New kitchens or bathrooms

· Roof replacements

· HVAC systems

· Foundation or structural work

· Flooring, windows, and more!

Things to Know

· You must live in the home as a primary residence.

· The work must begin within 30 days of closing and be completed in 6 months.

· You must work with an FHA-approved lender (we’ve got you covered 😉).

· A HUD consultant may be required for standard loans.

Final Thoughts

If you’ve been dreaming of a starter home you can customize, the FHA 203(k) loan might be your ticket to affordable homeownership. Instead of waiting to save for renovations, you can get everything done upfront — and move into your dream home faster.

Ready to explore your FHA 203(k) loan options?
📞 Let's schedule a free consultation today!

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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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