FHA 203k Standard

The FHA 203k Standard (also called the Full or Consultant 203k) is the heavyweight of renovation lending. It finances the purchase of a home plus major renovation work in one government-insured mortgage — including structural changes, room additions, foundation repair, and complete gut rehabs.

A HUD-approved 203k Consultant works with you and your contractor to produce a Work Write-Up, and the appraisal is based on the home's after-improved value. Renovation funds sit in escrow and are released in draws as work is completed and inspected.

There is a $5,000 minimum in repairs, and the total loan is capped by your county's FHA loan limit. The Standard 203k can even finance up to six months of mortgage payments if the consultant determines you can't occupy the home during construction.

Best for

• Homes with structural issues or failed inspections
• Room additions, layout changes, second stories
• Foreclosures and distressed properties needing major work
• Projects over the $75,000 Limited 203k cap

Program terms, limits, and eligibility are set by the insuring or guaranteeing agency and vary by lender and county. A licensed renovation lender can confirm exactly what your scenario qualifies for.