FHA 203k Loan

FHA 203(k) Loan: Finance Your Home and Renovations with One Simple Loan

If you’re dreaming of purchasing a fixer-upper or making major improvements to your current home, the FHA 203(k) Loan could be the perfect solution. Offered through the Federal Housing Administration (FHA), this unique loan program allows you to finance both the purchase (or refinance) of a home and the cost of renovations — all in one convenient mortgage.

What Is an FHA 203(k) Loan?

An FHA 203(k) loan is a government-backed mortgage designed to promote homeownership while revitalizing older or outdated homes. It enables homebuyers and current homeowners to borrow funds for both the home and necessary repairs or upgrades, such as structural improvements, remodeling, or energy-efficient enhancements.

There are two types of 203(k) loans:

  • Standard 203(k) – Ideal for major renovations or structural repairs.

  • Limited 203(k) – Best for smaller upgrades or cosmetic improvements (typically under $35,000).

Key Benefits of an FHA 203(k) Loan

  • One Loan, One Closing: Finance the home purchase and repairs together.

  • Low Down Payment: As low as 3.5% for qualified borrowers.

  • Flexible Credit Requirements: Easier qualification compared to conventional renovation loans.

  • Revitalize Properties: Perfect for older homes that need TLC.

  • Increase Home Value: Renovations can significantly boost the property’s worth.

Eligible Improvements

The FHA 203(k) loan covers a wide range of renovation projects, including:

  • Roofing, gutters, and downspouts

  • Flooring, tiling, and carpeting

  • Kitchen and bathroom remodels

  • Plumbing and electrical upgrades

  • HVAC and energy efficiency improvements

  • Structural repairs and additions

  • Accessibility modifications

(Note: Luxury upgrades like pools and outdoor kitchens are not eligible.)

Who Is the FHA 203(k) Loan For?

This program is ideal for:

  • First-time homebuyers looking to buy and improve an affordable home

  • Homeowners who want to refinance and renovate their existing property

  • Investors looking to occupy and improve distressed or older homes

Why Work with Rami Dalal?

At Rami Dalal – Nexa Mortgage, we understand that home renovations can be overwhelming — especially when dealing with financing. That’s why we provide personalized guidance and expert support throughout the FHA 203(k) loan process. From determining your eligibility to closing the loan and managing disbursements, we’re here to make your renovation journey smooth and stress-free.

Let’s turn your renovation vision into a reality — with a loan designed to simplify the process.

Ready to Get Started?

Reach out today to learn more about FHA 203(k) loan options and see how Rami Dalal can help you buy, repair, and create the home you’ve always wanted.

📞 Call: (901) 387-6398‬
📧 Email: rdalal@nexamortgage.com
📍 Visit: Memphis, TN 38117