Buy or Refinance a Home and Renovate It With One Loan
An FHA 203(k) loan allows you to finance both the purchase (or refinance) and renovation of a home using a single mortgage.
*Subject to FHA guidelines, borrower qualification, and lender approval.
Why Use a 203(k) Renovation Loan?
One Loan, One Payment
Combine your home purchase and renovation costs into a single mortgage — one closing, one monthly payment.
Low Down Payment Options
FHA loans may allow as little as 3.5% down depending on your qualifications and credit profile.
Increase Property Value
Borrow based on the future appraised value of the home after renovations are complete.
Flexible Qualification
FHA guidelines are often more flexible than conventional loans, helping more buyers qualify.
What Is an FHA 203(k) Loan?
An FHA 203(k) loan is a government-backed renovation mortgage that allows you to purchase or refinance a home and include the cost of repairs and improvements in the same loan.
At closing, funds are allocated toward the home purchase or payoff, while renovation funds are held in escrow and released as work is completed — keeping everything streamlined under one loan.
Two Types of 203(k) Loans
LIMITED 203(k)
- For minor, non-structural repairs
- Up to ~$75,000 in renovations
- No consultant typically required
- Ideal for cosmetic upgrades (floors, kitchens, paint)
STANDARD 203(k)
- For major renovations and structural work
- Minimum $5,000 renovation scope
- Requires FHA-approved consultant
- Ideal for additions, major rehab, or full remodel
What Can You Renovate?
Kitchen and bathroom remodels
Flooring and interior upgrades
Roofing, HVAC, plumbing, electrical
Structural repairs and additions
Energy-efficient improvements
Accessibility upgrades
Note: Luxury items such as pools are typically not eligible under the 203(k) program.
How the 203(k) Loan Process Works
Plan Your Renovation
Work with a contractor to outline the repairs, upgrades, and associated costs.
Apply for Financing
Submit your mortgage application along with your renovation plans and contractor bids.
Appraisal & Approval
The home is appraised based on its after-improved value, which helps determine your loan amount.
Close & Renovate
Funds are released in stages as renovation milestones are completed by your contractor.
Renovations typically must begin shortly after closing and be completed within a set timeframe established by the lender and FHA guidelines.
Why Work With Eric Estevez
Personalized Guidance
Your renovation loan strategy is built around your specific goals and property.
Renovation Loan Experience
Deep expertise with FHA 203(k) programs for purchase and refinance scenarios.
Backed by CMG Home Loans
A trusted national lender with the resources and reputation to close on time.
Clear Communication
You'll always know where you stand — from application through closing.
Limited consultation spots available.
Frequently Asked Questions
Turn a Fixer-Upper Into Your Dream Home
A 203(k) renovation loan could be the key to buying the home you've always wanted — or finally fixing up the one you have. Let's explore your options together.
No pressure. No obligation. Just a real conversation about what's possible for your situation.
Or call us directly: 1.551.298.3449