Loan Program Options
203K Loans are a unique financing option backed by the Federal Housing Administration (FHA) that enables homebuyers and homeowners to roll renovation costs into their mortgages.
What is a 203(k) Home Loan?
A 203(k) Home Loan, backed by the Federal Housing Administration (FHA), allows borrowers to finance both the purchase (or refinance) of a home and the cost of renovations under a single mortgage. This loan is ideal for homebuyers and homeowners looking to transform fixer-uppers into their dream homes.
Why consider a 203(k) Home Loan?
The FHA 203(k) loan provides a convenient way to finance home improvements, eliminating the need for separate renovation loans or credit lines. Key benefits include:
Finance both purchase and renovation costs together—ideal for buying and improving a home at once.
Low down payment requirement—as low as 3.5%, making it accessible to more buyers.
Flexible credit guidelines—more lenient than conventional loans, helping borrowers with moderate credit scores.
Lower interest rates than personal loans or credit cards, making it a cost-effective way to finance renovations.
Available for both home purchases and refinancing, so homeowners can renovate their existing home without moving.
With a 203(k) loan, buyers and homeowners can turn an outdated or damaged home into a beautifully renovated property—all with one affordable mortgage.
Types of FHA 203(k) Loans
There are two types of 203(k) loans, each designed for different renovation needs. Understanding these options helps borrowers choose the best loan for their home improvement goals.
Standard 203(k) Loan
Designed for major renovations and structural repairs.
Covers foundation work, room additions, plumbing, electrical, and other extensive upgrades.
Requires a minimum renovation cost of $5,000 and a HUD-approved consultant to oversee the project.
Limited 203(k) Loan (Streamlined 203(k))
Ideal for minor repairs and non-structural improvements (up to $35,000 in renovation costs).
Covers painting, flooring, kitchen/bathroom remodels, HVAC upgrades, and more.
No consultant required, making it a simpler, faster financing option.
What Can You Use a 203(k) Loan For?
203(k) loans cover a wide range of home improvements, including:
Roofing, gutters, and structural repairs.
Energy efficiency upgrades such as windows, insulation, and solar panels.
Kitchen and bathroom remodels to modernize the home.
HVAC, plumbing, and electrical system upgrades.
Accessibility improvements for disabled homeowners.
Who Should Consider a 203(k) Loan?
A 203(k) loan is perfect for:
Homebuyers looking to purchase and renovate a fixer-upper.
Current homeowners who want to refinance and fund home improvements.
Borrowers who need a cost-effective way to finance renovations without using high-interest loans or credit cards.
With flexible financing, low down payment requirements, and the ability to roll renovation costs into one loan, a 203(k) home loan is a great solution for buyers and homeowners looking to improve their property affordably.
Your Goals. Your Home. Your Brightside.
Home financing should feel empowering, not overwhelming. At Brightside Mortgage, we’re committed to helping you achieve homeownership with confidence, clarity, and peace of mind. Let’s turn your homeownership dreams into reality—together.
