FHA 203(k) Renovation Loan
An FHA loan that folds renovation costs into your mortgage, so you finance the home and the fixes together. It suits move-in-not-ready houses a standard loan won't touch.
- Down payment
- As little as 3.5% down on the combined purchase-plus-repair amount.
- Credit context
- Follows FHA credit guidelines, so scores around 580 can qualify. Mortgage insurance applies as with any FHA loan.
- Income rules
- No income limit. Repairs must be documented with contractor bids, and the work follows an FHA-approved plan.
Individual lenders set the interest rate, fees, mortgage-insurance treatment, and final approval requirements. Compare written Loan Estimates before choosing.
How repayment works
Your monthly housing payment usually includes principal and interest, and may also include property taxes, homeowners insurance, mortgage insurance, and association fees. Your lender’s written Loan Estimate and Closing Disclosure control the actual costs and terms.
A lower advertised down payment does not necessarily mean the lowest monthly payment or lowest total cost.
Who it may fit
- Buyers who are rebuilding credit
These are situations worth exploring, not a qualification decision.
What could rule it out
- The issuing body lists a credit floor of 580: Follows FHA credit policy: 500–579 allowed with at least 10% down.. A lender may require more.