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Renovate

Renovate the home you already own, on the value it will have when you are done.

A 203k refinance replaces your current loan with an FHA loan sized on the home's value after the renovation, so you can fund a kitchen, roof, addition or accessibility work without a second loan or a home equity line.

Loan amountCurrent balance plus repairs
Based onAfter-repair value
Limited 203kRepairs up to $75,000
Minimum credit580
See if I qualifyCall (800) 511-3330
4.4 on Google · 214 reviewsNMLS 13988Licensed in 15 states + DC
Who it's for

Is the FHA 203k refinance right for you?

  • Owners who want to renovate but have limited equity today
  • Homeowners with a roof, HVAC or structural project they cannot fund from savings
  • Anyone adding a bathroom, bedroom or accessibility features
  • Owners who would rather have one mortgage than a first plus a HELOC
How it works

Three steps from here to closing.

Scope and bids

Choose a licensed contractor; a HUD consultant manages a standard 203k.

Appraisal on the after-repair value

The new loan pays off the current mortgage and funds the repair escrow.

Close, then renovate

Funds release to the contractor in draws as inspections pass.

What you'll need

Requirements at a glance.

  • FHA credit and income guidelines (580+ score)
  • Primary residence, one to four units
  • Licensed, insured contractor with a written bid
  • Work starts within 30 days and finishes within six months
  • Limited 203k: repairs up to $75,000, no structural work
Straight talk

The upside, and what to weigh.

Why people choose it

  • Borrow against the future value, not today's
  • One loan, one payment, one closing
  • FHA rates are lower than most renovation or personal loans

Things to consider

  • FHA mortgage insurance applies to the whole loan
  • Consultant and inspection requirements add time
Common questions

Asked on almost every first call.

Can I do the work myself?

Generally no; FHA requires licensed contractors.

How does the appraisal work?

The appraiser reviews the plans and bids and values the home as if the work were finished.

Is there a cash-out option?

No. The funds go to the renovation escrow, not to you.