An FHA 203(k) loan lets you finance the purchase (or refinance) of a home PLUS eligible renovations in a single mortgage. Limited 203(k) covers smaller cosmetic and non-structural work; Standard 203(k) handles larger rehab including structural repairs. Ryan and Steve help Indiana buyers compare Limited vs Standard and map the renovation budget into the loan.
One loan covers the home and the rehab — so you are not juggling a purchase mortgage plus a separate construction loan.
Finance the acquisition (or refinance) and eligible improvements in a single FHA-insured mortgage.
Kitchen updates, flooring, paint, fixtures, and other non-structural improvements under the Limited 203(k) cap.
Room additions, foundation work, major systems, and full-gut renovations through Standard 203(k).
Windows, insulation, HVAC efficiency improvements, and other eligible energy-saving upgrades.
Built-in contingency funds help cover unexpected costs discovered during renovation.
The right path depends on scope, timeline, and how much structural work the property needs.
203(k) works best when you have a clear vision for the property and a realistic rehab budget.
Planning the rehab early keeps your closing timeline realistic and your contractor ready to start.
Step 1
Define what you want done — room by room — and get a rough budget before you write the offer.
Step 2
We compare caps, consultant requirements, and timeline so you pick the right 203(k) path.
Step 3
Contractor bids and HUD consultant plans get submitted for lender review and approval.
Step 4
You close on the combined loan; renovation funds release in stages as work is completed and inspected.
Related guides to help you compare options and move toward pre-approval.
When the home needs more work than a standard FHA purchase allows.
FHA minimum property requirements and appraisal repair conditions.
Compare FHA 203(k) with other renovation financing options.
Full FHA guide with calculator and property requirements.
2MG Daily
Recent articles from our blog on renovation financing and FHA rehab programs.
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Limited 203(k) Streamline finances minor, non-structural improvements with a total rehab budget capped at $75,000 (repairs + fees + contingency). No HUD consultant is required — up to 3 licensed contractors, max 2 draws, and 9-month completion.
Standard 203(k) supports major renovations including structural work, with a $5,000 minimum rehab and no maximum cap beyond FHA loan limits. A HUD consultant is required, along with one general contractor, up to 5 draws, and 12-month completion.
Yes — 203(k) can be used for purchase or refinance when rehabilitating an existing one- to four-unit home that will be your primary residence.
Longer than a standard purchase because of rehab specs, bids, and consultant work. We set expectations early so your contract timeline fits.
Ryan & Steve will walk through your renovation scope, compare Limited vs Standard 203(k), and map the rehab budget into one loan — before you write the offer.