Need some cash to fix up your home? A 203(k) loan may be just what you need to finance your repair or renovation plans.

A 203(k) rehab loan is a type of loan from the Federal Housing Administration (FHA). There are two types of these loans – the FHA Full 203(k) and the FHA Streamline 203(k). Embrace offers both, in addition to Fannie Mae’s HomeStyle renovation loan. These loans all have similar goals – to help you renovate a property – but there are differences your loan officer will be able to walk you through.

Count on Embrace every step of the way.

When you contact us about 203(k) renovation loans, you’ll work with the same mortgage specialist from start to finish. Loan officers at Embrace Home Loans are trained to pay attention to your goals, help you understand your options, and clearly explain how different loan programs work so you can make informed decisions.


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We know that obtaining a mortgage to buy a new home can feel overwhelming, but when you add the pressure of renovations as well, that has the potential to be downright stressful. Our mortgage specialists are here to ease your mind and make the 203(k) loan process as easy as possible.

A 203(k) mortgage can help you buy a home in most any condition, make immediate improvements, and pay for them over time. Whether they’re basic repairs and upgrades or extensive additions and renovations, you’ll have just one application, one loan approval, one closing, and one monthly mortgage payment.

What are 203(k) loan requirements?

• Applicants must meet the standard loan program credit qualification requirements.

• The property must meet renovation loan requirements.

• An appraiser’s estimate of what the property value will be with completed improvements must support the mortgage amount.

• Down payment and closing cost requirements may vary depending on the loan type.

What kind of renovations can be made?

Depending on the financing option you choose, improvements can range from basic repairs to minor updates and upgrades to more extensive remodeling and renovations, including bringing severely damaged or neglected properties up to habitable, insurable standards.

Properties that are sold “as-is” often would not qualify for a standard FHA loan. 203(k) loans, however, are designed to improve, update, and modernize the home.

How much house can I afford?

Affordability is about more than how much you can borrow. Our calculator can help you with the details.



203(k) renovation loans aren’t just for new homebuyers – they’re also for homeowners who are looking to upgrade or enhance their current living space. Instead of managing two different loans with two different interest rates, you can finance the expense of home repairs or a remodel project at the current interest rates and refinance your mortgage in the process.

Did you know that the loan-to-value ratio and amount you’re qualified to borrow can be based on what your house will be worth after you make the upgrades – not what it’s worth now? This increased cash flow makes it a lot easier for some homeowners to finance bigger renovation projects.

FHA Full 203(k) Renovation Loans vs. FHA 203(k) Streamline Loans

The two main 203(k) loans you will have to choose from for your refinance are the FHA Full 203(k) and the FHA Streamline 203(k). Here are the basics of what they’re generally used for:

FHA Full 203(k)

A homeowner can borrow up to 110% of the after-improved value to pay for an assortment of projects designed to rehabilitate and repair single-family properties.

• Structural alterations and reconstruction

• Reconditioning or replacement of plumbing, heating, air-conditioning, and electrical systems

• Elimination of health and safety hazards

• Changes for improved functions and modernization

• Roofing, gutters, and downspouts

• Flooring, tiling, carpeting

• Appliances when at least $5,000 of basic home repairs are involved

• Much more, including energy conservation, accessibility, and landscape work

FHA Streamline 203(k)

With this type of loan, a homeowner can borrow up to $50,000 in additional financing to help pay for an assortment of projects designed to rehabilitate and repair single-family properties.

• Repair/replace roofs, gutters, and downspouts

• Repair/replace/upgrade existing HVAC systems

• Repair/replace/upgrade plumbing and electrical

• Repair/replace existing flooring

• Minor remodeling that does not involve structural repairs (kitchen, bathroom, etc.)

• Interior and exterior painting

• Weatherization

• Appliances

• Accessibility improvements for persons with disabilities

There are some restrictions with both of these loan types, so be sure to tell your loan officer about the specific repairs you’re hoping to make – he or she will point you in the right direction and help you choose the 203(k) loan that fits your needs.

Call 800-333-3004 to speak with an Embrace mortgage specialist and learn more about 203(k) renovation loans.

Watch our (super short) Approved to Move™ video.