Florida FHA 203k Renovation Loans

Looking to buy a fixer-upper or renovate your current home? The FHA 203k loan is a powerful financing option that allows you to purchase and renovate a home with one loan. This program provides funds for both the property purchase and the necessary repairs, making homeownership more accessible—without requiring large cash reserves for renovations up to 110% of after improved value appraised value. No do it your self repairs allowed.

Two Types of FHA 203k Loans

1. Standard 203k Loan

For homes needing structural repairs or renovations exceeding $31,500.

• Covers major renovations like room additions, foundation work, or extensive remodeling.
• Requires a HUD inspector and additional documentation.
• Best for properties needing significant updates.

2. Limited 203k Loan (Streamlined 203k)

For non-structural repairs up to $31,500.

• Common uses: roof replacement, HVAC, flooring, minor kitchen or bathroom updates.
• Requires a licensed contractor’s estimate for one repair type.
• If multiple repairs are needed, a General Contractor (GC) must oversee the project.

How It Works:

• Repair estimate + normally 10% buffer could be up to 20% for cost overruns is added to the purchase price.
• Your 3.5% down payment is based on the total loan amount (purchase price + repairs).
• Financing covers both home purchase and renovation—no need for upfront cash for repairs!

Already Own Your Home? Refinance with an FHA 203k Loan!

Homeowners can use an FHA 203k loan to refinance and renovate their current property. However, the loan amount must stay within FHA loan limits for your county. In Alachua County, FL, the current FHA loan limit is $524,255, but limits vary by location.

FHA 203k Loan Requirements

✔ Minimum Down Payment: 3.5% of the purchase price
✔ Credit Score: 600+ required for maximum financing
✔ Debt-to-Income Ratio:

• 43% max for credit scores below 620
• Up to 56.9% for scores above 620
  ✔ Eligible Property Types:
• Single-family homes
• Mobile homes with land
• Townhouses & select condos
  ✔ Primary Residences Only (Owner-occupied homes)
  ✔ Property Must Meet Safety & Structural Integrity Standards

Need a Higher Loan Amount? Consider a Fannie Mae HomeStyle Loan!

For homes exceeding FHA loan limits or investment properties, a Fannie Mae Conventional Renovation Loan may be a better option. This loan works similarly to FHA 203k but offers more flexibility.

Get Pre-Qualified Today!

Don’t let a home needing repairs stop you from buying or refinancing. Our team has extensive experience closing FHA 203k loans quickly and smoothly. Contact us today to explore your options and start your renovation loan journey!