FHA 203(k) Renovation Loan
The FHA 203(k) Renovation Loan is one of FHA's specialized options. Here is the plain-English rundown for 2026.
How it works
The standard 203(k) finances purchase plus $5,000 or more in renovations — including structural work — in one loan, with funds held in escrow and released as work completes.
Key things to know
- Minimum 3.5% down with a 580+ credit score (10% down for 500-579).
- Loan amounts are capped by your county FHA limit — $541,287 floor up to $1,249,125 in high-cost areas.
- FHA mortgage insurance applies; budget the 1.75% upfront premium plus annual MIP.
- The home must be your primary residence and meet FHA's minimum property standards.
Program rules are set by HUD and updated periodically. Join the free notification program to hear about changes to the FHA 203(k) Renovation Loan first.
Stay Ahead of FHA Rule Changes
Join the free FHA Notification Program — we watch rates, requirements, and new programs so you do not have to.
Free to join. Msg & data rates may apply; reply STOP to opt out. See our Terms & Privacy Policy.
Frequently Asked Questions
- What is the FHA 203(k) Renovation Loan?
- The standard 203(k) finances purchase plus $5,000 or more in renovations — including structural work — in one loan, with funds held in escrow and released as work completes.
- What credit score and down payment are required?
- Like other FHA loans, 580+ qualifies for 3.5% down; 500-579 requires 10% down.