THE OVERVIEW
How this option works
The FHA 203(k) program insures a mortgage that can cover the purchase or refinance of an eligible home together with rehabilitation costs. Renovation funds are generally managed through a lender-controlled process as work is completed.
There are Standard and Limited 203(k) options with different project scope and process requirements. Plans, costs, contractors, property eligibility, inspections, and program rules all need review before the financing is finalized.