🔨 Found a Fixer-Upper? You May Be Able to Finance the Repairs Too

Sometimes buyers find the right location and the right house—except the property needs more work than they can comfortably pay for immediately after closing.

🔨 The FHA 203(k) Rehabilitation Mortgage is designed for certain situations where a buyer is purchasing or refinancing an eligible property while also financing qualifying improvements. Instead of necessarily taking one mortgage for the house and finding separate money for renovations, eligible acquisition and rehabilitation costs can be combined into the financing structure. (hud.gov)

There are two primary versions: Standard 203(k) for larger or more complicated rehabilitation projects and Limited 203(k) for more modest improvements. FHA expanded the Limited program so eligible renovation costs can reach up to $75,000, and HUD made additional program adjustments in June 2026 involving how renovation draws can be handled. 🛠️ (hud.gov)

Eligible projects can include items such as roofing, HVAC, plumbing, electrical work, modernization, accessibility improvements and other qualifying repairs. That doesn't mean every fixer-upper or borrower will qualify, and renovation financing involves additional rules, contractors and documentation compared with buying a move-in-ready home.

💡 But if you've been rejecting every dated house because you don't have another $50,000 sitting in savings for renovations, it's worth asking a qualified lender whether renovation financing changes the equation.

📩 Interested in finding a property with renovation potential? To talk with one of our agents, fill out the Contact Us form located at the bottom of our page, at mycoreteam.pro.