Is your dream home hiding behind an outdated kitchen, worn carpet, or a sagging roof? Many homes with great bones just need some love — but tackling renovations on top of a new mortgage can feel overwhelming. That’s where the FHA 203(k) loan steps in.
This government-backed program lets you roll the purchase price and renovation costs into one simple loan. It’s designed for buyers who see potential where others see a fixer-upper.
How the FHA 203(k) Loan Works
Instead of juggling two separate loans (one for the home, one for renovations), the 203(k) combines them into a single, manageable mortgage. Here’s what the process looks like:
- Find the Right Home — Shop for a property that fits your vision and qualifies for the 203(k). It might be a house with great structure but dated interiors, or a place in need of bigger updates.
- Get Pre-Approved — Work with an FHA-approved lender to see how much you qualify for. This helps set your budget and guides your home search.
- Plan Your Renovations — Partner with a licensed contractor to outline your project and costs. The plan goes to your lender for approval.
- Close the Loan — Once approved, your purchase price and renovation budget are rolled into one mortgage.
- Renovate — Funds for repairs are placed in escrow, and the work begins. From upgrading kitchens and bathrooms to improving curb appeal, this is where your vision comes to life.
Why Buyers Love the FHA 203(k)
- One Loan, One Payment — Purchase and renovation costs are bundled together.
- Flexible Guidelines — Designed for a wide range of buyers, including those with modest credit or smaller down payments.
- Competitive Rates — Often cheaper than using separate personal loans or credit cards for renovations.
- Manageable Terms — Longer repayment periods help keep monthly payments affordable.
Turn a Fixer-Upper Into Your Forever Home
The FHA 203(k) loan gives you the freedom to buy the house you want — even if it needs work — and transform it into the home you love.
Ready to explore your options?
Call Cindy Cliff at 970-308-2540 or start here: cliffmortgages.com/info/home-purchase.