FHA 203(k) Renovation Loans

Limited 203(k)

HUD currently permits up to $75,000 of eligible rehabilitation costs under Limited 203(k), generally for minor remodeling and non-structural repairs or improvements.

Standard 203(k)

Standard 203(k) supports major rehabilitation and structural additions. HUD currently states rehabilitation cost must be at least $5,000.

One mortgage

The rehabilitation financing is incorporated into the FHA-insured mortgage rather than requiring the borrower to fund the entire project separately.

Not ordinary FHA

Contractor, scope, appraisal, escrow, draw, inspection and completion requirements make 203(k) operationally different from an ordinary FHA purchase loan.

Current 203(k) numbers

Limited 203(k) currently permits up to $75,000 total rehabilitation cost with no minimum and optional consultant; Standard requires at least $5,000 rehabilitation cost and a HUD-approved 203(k) Consultant. HUD now permits up to nine months for Limited completion and 12 months for Standard.

Pre-approval renovation checklist

Prepare a preliminary scope, rough contractor pricing, structural/nonstructural classification, expected permit needs, occupancy plan during construction, target completion time and likely as-completed value. Identify condo, manufactured-home, ADU, mixed-use or multi-unit characteristics before ordering the appraisal.

Execution checklist

Confirm the lender actively originates the selected renovation product; contractor accepts draw-based payment; required consultant is available; bid matches appraisal scope; permits can be obtained; contingency/change-order process is understood; and borrower has enough non-escrow liquidity for costs the program will not finance.

Primary sources to verify

• HUD — FHA 203(k)
• Fannie Mae — HomeStyle Renovation Eligibility
• Fannie Mae — HomeStyle Costs & Escrows
• Fannie Mae — HomeStyle Refresh
• Freddie Mac — CHOICERenovation
• Freddie Mac — CHOICEReno eXPress

Last reviewed September 15, 2026.