203k renovation loans

Buy and fix up a home

A 203(k) renovation loan is for “fixer-upper” homes that need work. With this mortgage you can roll all of the renovation costs back into the mortgage. They are insured by the FHA (Federal Housing Administration) so they offer more lenient qualification requirements than other similar products. You will pay FHA mortgage insurance for the life of the loan with one of these.

down payment

Only 3.5% down payment required with a credit score of 580 or higher. 10% down for credit scores between 500 and 579.

Mortgage insurance

It requires the standard FHA mortgage insurance which is typically 1.75% upfront and 0.85% annually (paid in 12 equal payments monthly).


Terms of 5 to 30 years available. These loans often have minimum contingencies for reserves. The repairs must be completed by a certified contractor, not by yourself.

two versions

There are 2 types of renovation loans: 203k Standard and 203k Limited. The limited option is capped at $35,000 in repairs, requires less paperwork, and your home must be habitable.

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Elliott Bowman

(206) 949-5563

NMLS # 1982189

CO License # 100517635

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