What Can an FHA 203(k) Loan Be Used For?

An FHA 203(k) loan is a versatile financing option that can help fund a variety of home renovation and improvement projects. Whether you’re purchasing a home or refinancing, the FHA 203(k) loan can cover a broad range of upgrades, including:

  • Structural alterations and reconstruction to improve the foundation or layout of the home

  • Modernization and functional improvements to increase efficiency and comfort

  • Health and safety hazard elimination (such as mold removal or lead paint abatement)

  • Aesthetic improvements to enhance the property’s appearance and eliminate outdated features

  • Plumbing repairs or replacements, including the installation of wells and septic systems

  • Roofing upgrades, including adding or replacing gutters and downspouts

    • Outdoor Kitchen Bryan College Station TX

  • Floor replacements or treatments to upgrade flooring

  • Major landscaping work and site improvements to improve the property's curb appeal

  • Accessibility enhancements for disabled individuals to ensure a comfortable living space

  • Energy efficiency improvements, such as insulation or new windows

    • However, luxury items like swimming pools, hot tubs, outdoor kitchens, and other non-functional enhancements are not eligible for FHA 203(k) loan financing. In general, only upgrades that improve the functionality, safety, and attractiveness of the property qualify for this loan.

    Property Eligibility for FHA 203(k) Loans

    Not all properties are eligible for an FHA 203(k) loan. For example, mixed-use properties (residential and commercial properties where less than 51% of the space is residential) and co-ops are generally excluded. Before applying for an FHA 203(k) loan, it’s important to confirm that your property meets eligibility requirements. Your 203(k) consultant or mortgage broker can assist with this research.

    FHA 203(k) Refinance ➡