203k Renovation Loans
Buy the house and finance the repairs in a single loan.
A 203k lets you borrow against what the home will be worth after the renovation rather than what it is worth in its current condition. Purchase price and repair budget are combined into one mortgage with one payment and one closing.
That solves a real problem: the house that needs $60,000 of work is often the best value on the street, and it is also the house a standard loan will not touch.
A good fit when…
- The home needs repairs a conventional loan will not finance
- You are buying a dated property with good bones
- You do not have cash on hand for renovations
- You want one loan and one payment instead of a separate construction loan
Worth knowing
- Work must be performed by approved licensed contractors
- Repair funds are held in escrow and released in draws as work is completed
- The process takes longer than a standard purchase — plan the timeline
- There are limits on what qualifies, and luxury additions are generally excluded
Our take. There are two versions: a limited 203k for smaller cosmetic projects and a standard 203k for structural work. Which one you need changes the paperwork significantly, so tell us about the property early.
Not sure this is the right program?
Most people arrive certain they need one specific loan and leave with a better-fitting one. Tell us what you are trying to do and we will lay out the realistic options side by side — payment, cash to close, and total cost — so you can compare them honestly.
30-Year Fixed15-Year FixedAdjustable RateFHA LoansVA LoansUSDA LoansJumbo Loans
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