Buy the fixer-upper and fund the fixes, together.
An FHA 203(k) loan rolls the purchase price and the renovation costs into a single mortgage, so you can buy a home that needs work and make it yours from day one.
No SSN required. Zero impact to credit. Your information is never sold.
Turn a fixer-upper into the home you want
An FHA 203(k) renovation loan lets you finance both the purchase and the improvements in one mortgage, instead of taking a separate construction or home equity loan later. That makes it possible to buy a home that would not qualify for traditional financing and improve it right away.
There are two versions. The Limited 203(k) covers projects up to $35,000 with streamlined requirements. The Standard 203(k) handles major renovations above $35,000. Both let you buy with as little as 3.5% down based on the after-renovation value, and Ky will help you coordinate contractors and draw schedules so the project stays on track.
- ✓ Finance the purchase price and renovation costs in one loan
- ✓ Down payment as low as 3.5% based on the after-renovation value
- ✓ Open up homes that need work, not just move-in-ready listings
- ✓ Build equity through improvements before you even move in
The 203(k) renovation loans process
Four steps, explained in plain English at every one.
Find the home and the plan
Choose a property that needs work and get contractor estimates for the repairs.
Apply for the combined loan
Your application covers the purchase price plus the estimated renovation costs.
Appraise on future value
The appraisal is based on what the home will be worth after the work is done.
Close and renovate
Close, then funds release to your contractors in draws as the work progresses.
No credit pull. No obligation.
203(k) qualification, in plain English
The 203(k) follows FHA guidelines: a minimum 580 credit score for 3.5% down, steady employment, and a debt-to-income ratio usually under 50%. The home must be your primary residence (or a 2 to 4 unit property where you live in one unit), and renovations must be finished within six months. You will need detailed estimates from licensed contractors before closing, subject to FHA loan limits in your area.
The loan amount is based on the lesser of the purchase price plus renovations, or 110% of the after-renovation value. A Limited 203(k) skips the HUD consultant and is ideal for smaller projects. Ky will tell you which version fits your home.
FHA 203(k) Renovation Loan Qualifier
Check your eligibility in one minute. No SSN, no credit pull, no pressure.
Takes about a minute.
Why buyers choose a 203(k)
One loan, one closing
Purchase and renovation financed together, not as two separate loans.
Low down payment
As little as 3.5% down based on the after-renovation value.
Instant equity
Improvements can build value before you move in.
Flexible scope
From a Limited 203(k) for small repairs to a Standard 203(k) for major work.
A wider search
Consider homes that would not pass standard financing.
FHA backing
Government insurance gives both you and the lender security.
Common questions about 203(k) renovation loans
Have one that's not here? Just reach out.
What is the difference between Standard and Limited 203(k)?
Limited 203(k) covers non-structural repairs up to $35,000 with streamlined requirements and no HUD consultant. Standard 203(k) is for major renovations over $35,000 and structural work, and it requires a HUD consultant to oversee the project.
What renovations are eligible?
Structural repairs, room additions, kitchen and bath remodels, new roofs, HVAC, plumbing and electrical, accessibility updates, and energy improvements. Luxury items like pools are generally not eligible. All work must meet local building codes.
Can I do the work myself?
No. All work must be done by licensed contractors. That keeps the repairs up to code and protects both you and the lender.
How long do I have to finish the renovations?
Both Standard and Limited 203(k) loans require the work to be complete within six months of closing.
Do I have to live there during construction?
No. You must intend to use it as your primary residence once the work is done, but you can delay moving in if construction makes it uninhabitable.
What if the renovation costs more than estimated?
Your loan is based on the contractor estimates from before closing, so overruns come out of your pocket. Building in a contingency reserve of roughly 10 to 20% is smart.
See a fixer-upper as a first home.
Get a no-cost 203(k) quote and a clear plan to buy and renovate in one loan. Ky handles the moving parts with you.
Quick • No credit pull • Just real numbers
All loans subject to credit approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations may apply. This is not a commitment to lend. Licensed in Minnesota. FHA 203(k) loans require detailed contractor estimates, licensed contractors, and completion within six months. All renovations must meet local building codes and FHA standards. Standard 203(k) loans require a HUD consultant. Property must meet FHA property standards after renovations.