Designed for home rehabilitation purposes, FHA 203(k) loans can help pay for your home renovations. These loans are available both as a refinance and purchase. Thus, you can borrow against the equity in your home for home improvement and you can also get a single mortgage to finance both purchase and renovation of the home.


FHA 203(k) Loans can be a great option for home buyers who can meet these requirements:

  • Be able to prove that money was spent on renovating your home
  • Prove a decent credit score (580 or above)
  • List of improvements (some are not eligible for financing such as installing swimming pools)
    If you meet these requirements, you may be able to qualify for an FHA 203(k) Loan.


To encourage revitalization of older Southern California neighborhoods or damaged homes, FHA provides two types of loans to help homebuyers reserve a portion of loan funds to accomplish non-structural and structural repairs.

A standard 203(k) loan is provided for properties with need for structural upgrades.

203(k) Eligible Repairs and Improvements include:

Repair/Replacement of roofs, gutters, and downspouts
Repair/Replacement/Upgrade of existing HVAC, plumbing, and electrical systems

  • Minor remodeling, such as kitchens, which does not involve structural repairs
  • Exterior and interior painting, including lead based paint stabilization or abatement
  • Weatherization, including storm windows and doors, insulation, and weather stripping
  • Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers, and microwaves.
  • Improvements for accessibility for persons with disabilities.
  • Repair, replacement or the addition of exterior decks, patios, and porches.
  • Basement waterproofing or remodeling which does not involve structural/sculptural repairs.
  • Window and door replacement and exterior siding replacement.
  • Well or septic system repair or replacement

Ineligible Repairs include:

  • Luxury items and improvements that do not become a permanent part of the real property.
    • Some examples include: barbecue pits; bathhouses; dumbwaiters; exterior hot tubs, saunas, spas, and whirlpool baths; outdoor fireplaces or hearths; photo murals; swimming pools; television antennas and satellite dishes; tennis courts; tree surgery.
    • However, the homeowner can use the 203(k) program to finance such items as painting, room additions, decks, and other items, even if the home does not need any other improvements.
  • Existing structural damage and foundation repairs.

A Limited 203(k) loan covers non-structural upgrades, such as painting, new counters, cabinets, patching holes, replacing doors, repair/installation of HVAC systems, and purchase/installation of new appliances. The maximum repair amount which can be financed using a Limited 203(k) loan is $35,000 with no minimum requirement for repairs.


Eligible SoCal properties for a 203(k) loan include:

  • Attached / Detached Single Family Residential properties
  • PUDs
  • 2-4 Unit Properties
  • HUD-approved Condominiums
  • Doublewide Manufactured Housing


Before applying to receive a home renovation loan, decide as best you can regarding how much money you will need to begin your home renovation. If you hire a contractor, ask them to give you an estimate on the total cost of the home repairs. Once you have that specific number, discuss the possibility of a home renovation loan with a us. Different loans offer different amounts to borrowers, so talking to a licensed Loan Officer can help determine the specific loan and amount that fits your project’s goals.

For any further questions about the types of home renovation loans we offer or whether you qualify for an FHA 203(k) loan, Contact The Kolesar Team.

Our company is not endorsed by, nor acting on behalf of or at the direction of the U.S. Department of Housing and Urban Development, Federal Housing Administration, U.S. Department of Agriculture, Veterans Administration, or the Federal Government.


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