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Property Guide

Can I Buy a Fixer-Upper With FHA?

Yes — but standard FHA only finances homes that meet Minimum Property Requirements at closing. Cosmetic updates are fine; major safety or structural issues usually need pre-closing repairs or an FHA 203(k) renovation loan. Ryan and Steve help you decide whether standard FHA, a repair escrow, or 203(k) is the right path.

Get Pre-ApprovedFHA Overview

When Standard FHA Works on a Fixer

Not every fixer-upper needs a renovation loan — standard FHA can work when the property is livable and meets MPR at closing.

Cosmetics only

Outdated paint, flooring, cabinets, and finishes are fine — FHA does not require a move-in-ready aesthetic.

Utilities working

Water, heat, electricity, and sewage must be on and functional at the time of inspection.

Safe access

Stairs, handrails, walkways, and bedroom egress must meet basic safety standards.

No active leaks

Roof, plumbing, and foundation cannot have active water intrusion or structural failure.

Appraiser clears MPR

The FHA appraisal must confirm safety, soundness, and security — not just market value.

Standard FHA vs 203(k)

The right path depends on how much work the home needs and whether repairs can be completed before closing.

  • Standard FHA: home meets MPR at closing — cosmetic updates can wait
  • Repair escrow: limited post-closing work when allowed by lender and FHA
  • 203(k) Standard: major structural and rehab work rolled into one loan
  • 203(k) Limited: smaller projects up to a capped renovation amount
  • Timeline: standard FHA closes fastest; 203(k) adds contractor bids and draw schedules
  • Appraisal: 203(k) uses as-completed value; standard FHA uses current condition

Planning Checklist

Walk through these items before you write an offer on a fixer-upper with FHA financing.

  • Tour with MPR in mind — roof, utilities, access, and safety hazards
  • Get contractor or seller repair bids before the appraisal
  • Compare standard FHA, repair escrow, and 203(k) costs and timelines
  • Confirm seller credits or repairs fit FHA concession limits
  • Plan for re-inspection if pre-closing work is required
  • Budget for MIP, reserves, and renovation contingency if using 203(k)

How We Help You Finance a Fixer-Upper

A clear plan early keeps your closing on track — whether the home needs spot repairs or a full renovation.

Step 1

Walk the property with MPR in mind

We flag likely appraisal conditions before you are under contract.

Step 2

Get repair bids early

Your agent and contractors price fixes so seller credits or escrows are realistic.

Step 3

Choose standard FHA, escrow, or 203(k)

We compare paths on cost, timeline, and contractor requirements.

Step 4

Clear conditions before funding

Re-inspection and final sign-off so the loan funds without surprises.

Keep Exploring

Related guides to help you compare options and move toward pre-approval.

What Is an FHA 203(k) Loan?

Finance purchase and renovations in one FHA loan.

What Repairs Are Required?

Common FHA appraisal repair conditions.

What Is an FHA Appraisal?

How value and property standards are checked.

Renovation Loans

Broader renovation financing options.

2MG Daily

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Frequently Asked Questions

Can FHA finance a house that needs a new roof?

Often only if the roof is repaired or replaced before closing, or via an eligible 203(k) renovation loan that includes the work.

What is the difference between cosmetic and required repairs?

Cosmetic means paint, flooring, and finishes that do not affect safety. Required repairs are health, safety, and structural items the FHA appraiser flags.

Should I use FHA 203(k) instead?

If the home needs significant rehab beyond spot repairs, 203(k) lets you finance purchase plus renovation in one loan. We compare costs and timelines with you.

Can the seller credit me for repairs?

Sellers can often complete repairs or provide credits within FHA concession limits. Structure matters — we coordinate with your agent.

Looking at a Fixer-Upper With FHA?

Ryan & Steve will help you choose the right path — standard FHA, repair escrow, or 203(k) — and keep your closing on track from offer to keys.

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(765) 450-8933Get Started