Bucks County is full of homes with great bones and dated everything else. An FHA 203k loan lets you roll the cost of repairs and updates into the mortgage, based on what the home will be worth after the work is done.
Who it fits
An older home that needs work
Buyers eyeing an older home that needs work
Langhorne homesHomes others cannot finance
Buyers competing for homes other buyers cannot finance
Home purchase loansRefinance and renovate
Owners who want to refinance and renovate at once
Cash out refinanceA smaller down payment
Buyers with a smaller down payment
FHA loansHow it works
There are two versions. The Limited 203k covers non structural repairs up to a set dollar amount. The Standard 203k covers larger projects, including structural work, and involves a HUD consultant.
After closing, repair funds sit in escrow and are paid to your contractor as work is completed and inspected.
Key facts
- Down payment
- 3.5% of the purchase price plus repairs, for qualified borrowers
- Limited 203k
- Non structural repairs, simpler process
- Standard 203k
- Major and structural work, HUD consultant required
- Occupancy
- Primary residence
Common questions
Can I do the work myself?
Generally no. Lenders require licensed contractors and written bids.
What repairs qualify?
Kitchens, baths, roofs, HVAC, flooring, accessibility improvements and more. Luxury items like pools do not qualify.
How is a 203k different from a HomeStyle loan?
HomeStyle is the conventional version. It allows second homes and investment properties and has different mortgage insurance rules. See our renovation loans page.
