203K Renovation Loan

The FHA 203(k) loan allows you to purchase or refinance a home and include renovation costs in a single mortgage. Perfect for buyers looking to purchase fixer-uppers or homeowners planning major renovations.

3.5%
Min. Down Payment
$75,000
Limited Max
$806,500
Standard Max

Key Features

  • Finance purchase and renovation in one loan
  • Down payment as low as 3.5%
  • Limited 203(k): Up to $75,000 (NEW 2025 limit)
  • Standard 203(k): No maximum renovation amount
  • 12-month payment deferral option available
  • 75% upfront material draw for contractors

Benefits

  • Single loan for purchase and renovations
  • Lower down payment than conventional renovation loans
  • Increase home value and build instant equity
  • Competitive FHA interest rates
  • Perfect for Bergen County fixer-uppers
  • Turn older homes into modern dream homes

Requirements

  • Property must be at least 1 year old
  • Limited: 9-month completion, Standard: 12-month completion
  • Licensed contractor required for all work
  • Property must become primary residence within 60 days
  • Credit score of 580+ for 3.5% down payment
  • Detailed work plan and contractor bids required

Ideal For

  • First-time buyers purchasing fixer-uppers
  • Homeowners planning major renovations
  • Buyers wanting to increase home value immediately
  • Those seeking one-loan financing for purchase and repairs
  • Bergen County buyers targeting older housing stock
  • Buyers in Lodi, Garfield, Bogota seeking affordable entry

Ready to Get Started?

Contact Jimmy Joseph MBA to discuss your 203k renovation loan options.

Jimmy Joseph MBA

NMLS #1577754
Branch NMLS #2477715

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