FHA 203K 'Fixer-Upper' Mortgage

FHA Funds for Handyman-Specials & Fixer Upper


The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties

The FHA 203K program allows borrowers to add funds to a new FHA Purchase Mortgage or to secure funds for rehabilitation,  home improvements or repair work to someone who already has a home mortgage using a Streamlined 203K Loan


Purchase Program: Get up to $35,000.00 dollars for Home Improvements toward your new purchase.   


Mini (Streamline) 203K Refinance: Borrow up to $35,000.00 dollars for Home Improvements toward your existing home, even if you don't have the equity!    


If you have passed up buying homes that require cosmetic repairs for lack of funds to fix them up,  the FHA has a program for you. Not to be confused with FHA's much more complicated 203K program, a Streamlined 203K loan eliminates much of the paperwork and simplifies the process to obtain rehab

The Streamlined 203K loan allows for simple repairs that can be easily estimated and completed. Many are considered light cosmetic repairs, but some will require hiring a licensed contractor if it falls out of the borrower's area of expertise.

Here is an approved list of just some  repairs / improvements from HUD:

  • Roofs, gutters and downspouts

  • HVAC systems (heating, venting and air conditioning)

  • Plumbing and electrical

  • Minor kitchen and bath remodels

  • Flooring: carpet, tile, wood, etc.

  • Interior and exterior painting

  • New windows and doors

  • Weather stripping & insulation

  • Improvements for persons with disabilities

  • Energy efficient improvements

  • Stabilizing or removing lead-based paint

  • Decks, patios, porches

  • Basement completion and waterproofing

  • Septic or well systems

  • Purchase of new kitchen appliances or washer / dryer