Renovation/Repair Loans

FHA has a home improvement loan, section 203(k) insurance, which enables homebuyers and homeowners to finance both, the purchase (or refinancing) of a house and the cost of its renovation through a single mortgage - or to finance the renovation of their existing home. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer’s credit approved. The borrower selects a licensed general contractor to complete the renovations and submits a bid. The bank will assign an FHA fee inspector to review the bid, inspect the home and make recommendations as to additional work required by FHA. The lender fund the mortgage loans which the Department insures. The FHA 203k loan program is the Department’s primary program for the renovation and repair of single family properties.