FHA 203(k) Loan

An FHA 203(k) loan enables new homebuyers to finance their home purchase and home improvements in a single mortgage loan. Under the 203(k) loan program, the home is appraised before rehabilitation takes place and the total loan amount is based on what the projected value of the home will be in the improved condition. By providing affordable financing to acquire the property, as well as additional funds to improve the property, a 203(k) mortgage helps homebuyers who are purchasing a house in need of repair or modernization to avoid costly high interest rate, interim loans and time-consuming paperwork.


  • Receive the money to acquire and improve a property in one loan
  • May be used to refinance an existing mortgage and rehabilitate the home
  • Items such as painting, room additions, decks and other items are eligible under the program even if the home does not need any other improvements


  • Luxury items and improvements are not eligible
  • All health, safety and energy conservation items must be addressed and approved prior to completing general home improvements