FHA 203(k) Rehabilitation Mortgage

About This Program

The FHA 203(k) loan allows homebuyers and existing owners to finance both the purchase (or refinance) and renovation of a home in a single mortgage. The Limited 203(k) covers minor repairs and improvements up to $75,000, while the Standard 203(k) accommodates major structural work up to the 2025 FHA loan limit of $806,500. Minimum down payment is 3.5% for qualifying borrowers.

Combines purchase/refi + rehab costs; Limited up to $75,000 rehab; Standard up to county FHA limit.

Key Details

• Limited 203(k): rehab costs up to $75,000 for minor repairs
• Standard 203(k): major structural work, no separate rehab cap
• Minimum 3.5% down payment (FHA credit score requirements apply)
• Must use HUD-approved consultant for Standard 203(k)
• Available through FHA-approved lenders in Birmingham

How to Apply

Deadline: No deadline; apply through FHA-approved lender