HELPING YOU MAKE A HOUSE YOUR HOME

An FHA Standard 203(k) loan is perfect for your homebuyers who may want to finance a property that requires renovations or repairs. With an FHA Standard 203(k), FHA qualified buyers can obtain a single mortgage loan that includes both the home purchase as well as the remodeling or repair costs.

  • Corrections to deferred maintenance

  • Kitchen remodeling

  • Create an open floor plan

  • Foundation repairs

  • The completion of unpermitted structures

  • Room additions

  • Bathroom remodel

  • Fixes for health and safety issues

  • Updates to old plumbing or septic

  • Repair of driveways and sidewalks

  • A complete remodel to accommodate disabilities

Program Highlights

Purchase existing dwelling

Customize improvements

One loan closing

Funds to purchase and rehabilitate

Down Payment Assistance and Gift Funds are permitted

Maximum loan: 110% of “As Improved” appraised value

Upfront guarantee fee may exceed “As Improved” value

No future loan amount changes or re-amortization

Key Benefits

  • Correct dwelling deficiencies

  • Revitalize existing housing stock

  • Retain personal reserves post-closing

Eligible Loan Costs:

Interior Improvements:

  • Modernize kitchens, bathrooms, flooring

  • Add accessible features for disabilities

  • Additions, structural alterations, reconstruction

  • Energy efficiency upgrades

Exterior & Safety Repairs:

  • Install/repair septic systems and water wells

  • Remove safety/health hazards

  • Repair existing amenities (e.g., pools, saunas, accessory units)

Repair Types & Limits

Non-Structural Repairs:

  • Renovation costs up to $75,000

  • No minimum repair cost

  • Must be habitable

  • A 50% initial advancement at closing

  • Down Payment Assistance and Gift Funds Allowed

  • Great for minor upgrades or cosmetic repairs

Structural Repairs:

  • Finance above $75,000

  • Minimum rehab of $5000

  • Requires certified inspector and full inspections

  • Can include structural alterations, modernization and improvements to the home’s functionality, elimination or health and safety hazards, replacing plumbing, replacing roofing, gutters, downspouts, and adding or replacing flooring

Loan Types

Limited Renovation Loan

For non-structural repairs (≤ $75,000)

Standard Renovation Loan

For structural repairs or high-cost improvements

Loan Types

Limited Renovation Loan

For non-structural repairs (≤ $35,000)

Standard Renovation Loan

For structural repairs or high-cost improvements

Eligibility

Single-family primary residences only.

1-4 Family properties, including PUDs and site condos

Eligibility

Single-family primary residences only

Must be in USDA-approved rural areas

Credit Score:

  • Minimum 580 for 3.5% down payment

  • If below 580, a 10% down payment may be required

Occupancy:

  • Must be a primary residence

  • Borrower must occupy the home within 60 days of closing

  • Property Eligibility

Eligible Property Types:

  • Single-family homes

  • 1–4 unit buildings (must occupy one unit)

  • Condos (interior-only renovations; HOA approval required)

  • Certain manufactured homes (non-structural repairs only)

  • Renovation Requirements

Standard 203(k):

  • Minimum renovation cost: $5,000

  • No cap, but total loan must stay within FHA limits

  • Allows structural repairs, additions, and major remodeling

Limited 203(k):

  • Renovation cap: $75,000

  • No structural changes allowed

  • Ideal for cosmetic upgrades like flooring, painting, appliances

Contractor Rules:

  • Must be licensed and insured

  • DIY projects are not allowed

  • Detailed bids and work plans required

  • Up to 20% contingency may be added for unexpected costs

Loan Type Overview

  • HomeStyle Renovation provides a simple and flexible way for borrowers to renovate with a conventional first mortgage, rather than a second mortgage, HELOC, or other more costly methods of financing 

  • No minimum dollar amount required for repairs

  • Loan amount based on “as-completed” value

  • Can help save loans that have repair contingencies

  • Not just for owner occupied

  • Luxury improvements allowed

  • CHOICERenovation® is advantageous for borrowers who wish to refinance an existing mortgage and take on a substantial home improvement project.

  • Loan amount based on “as-completed/After improved” value

  • Can help save loans that have repair contingencies

  • CHOICERenovation® can be used for 1-unit second homes or Investment property

  • Luxury Improvements Allowed

Ready to Make a Move?

Let’s talk about your next chapter — whether it's finding your dream home, selling a property, or investing in your future.

Buying or selling a home is more than a transaction — it’s a life-changing experience. At Covenant Realty, we treat it that way.

We’re not just helping you find a house — we’re helping you find home.

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