FHA 203(k) Rehabilitation Loans
The FHA 203(k) program allows buyers to purchase or refinance a property in need of repair and bundle the rehabilitation costs into one low-down-payment mortgage based on the home's future 'as-completed' value. The Standard 203(k) and Limited 203(k) variants differ in scope, consultant requirements, and applicable cost limits.
Fixer-Upper Buyers & Homeowners Remodeling
Send Oakley your scenario for a personal review against 300+ wholesale lenders — no application submitted until you say go.
Program at a Glance
- Down Payment
- 3.5% down (as-completed value)
- Credit Score
- 580+ for 3.5% down (lender overlays may apply)
- Occupancy
- Primary residence only
- Term
- 15 & 30 yr fixed
- Property Type
- 1–4 unit (owner-occupied) + rehab
Key Program Highlights & Advantages
Limited 203(k): minor, non-structural repairs & updates — current HUD maximum rehabilitation cost is $75,000 (subject to FHA program limits and applicable program rules; figures are subject to change)
Standard 203(k): major or structural work, additions, & rebuilds — no fixed maximum repair-cost threshold, subject to applicable FHA mortgage limits and program requirements
Low 3.5% down payment based on the total post-renovation ('as-completed') value
Finance roof, HVAC, kitchen/bath updates, plumbing, & energy upgrades
Avoid paying cash upfront for contractor improvements
General Qualification Standards
Compare Similar Programs
| Program | Down Payment | Credit Score | Occupancy | Term |
|---|---|---|---|---|
| FHA 203(k) Rehabilitation Loans | 3.5% down (as-completed value) | 580+ for 3.5% down (lender overlays may apply) | Primary residence only | 15 & 30 yr fixed |
| Construction & Renovation Loans | Varies by program (often 5%+) | Often 620+ (varies) | Primary, 2nd home, investment | Construction → permanent |
| OTC (One-Time Close) Construction | Varies by backing; VA OTC 0% for eligible veterans | Often 620+ (varies by backing) | Primary (FHA/VA); flexible (conventional) | Construction → permanent, one closing |
Figures shown are typical ranges and vary by lender, program, and borrower profile.
Rates, terms, and program availability are subject to change without notice and depend on borrower qualification and underwriting approval. This is not a commitment to lend. Contact Oakley Pike for current program guidelines.
Ready to Explore FHA 203(k) Rehabilitation Loans?
Get custom rate quotes and personalized scenario analysis with Oakley Pike.