FHA 203(k) Mortgage Loans

The FHA 203(k) mortgage program gives you the ability to refinance or purchase a home in need of repairs by allowing you to include the cost of repairs in the loan.

What is a FHA 203(k) mortgage loan?

FHA 203(k) mortgage loans are an important tool for community and neighborhood revitalization. The 203(k) program offers borrowers the resources to rehabilitate a home that may be in need of repair. Borrowers have the option of refinancing with a FHA 203(k) loan in order to make improvements upon their existing residence or to purchase a new home in need of repairs. One loan is used to pay for the purchase (or refinance) of the house and the cost of renovations.

What types of FHA 203(k) mortgage loan programs are available?

Regular 203(k) Loans

Regular FHA 203(k) loans are for larger scale rehabilitation projects.The following repairs are eligible under the FHA Regular 203(k) mortgage loan program:

  • Structural alterations and reconstruction
  • Modernizing and improving the home’s function
  • Eliminating health and safety hazards
  • Changes that improve appearance
  • Reconditioning or replacing plumbing; installing a well and/or septic system
  • Adding or replacing roofing, gutters and downspouts
  • Adding or replacing floors and/or floor treatments
  • Major landscaping and site improvements
  • Enhancing accessibility for a disabled person
  • Making energy conservation improvements

Streamline 203(k) Loans

Streamline FHA 203(k) loans are for smaller rehabilitation projects.The following repairs are eligible under the FHA Streamline 203(k) loan program:

  • Repair/Replacement of roofs, gutters and downspouts
  • Repair/Replace/Upgrade of existing HVAC systems
  • Repair/Replace/Upgrade of plumbing and electrical systems
  • Repair/Replacement of existing flooring
  • Minor remodeling, such as kitchens and baths
  • Exterior and interior painting
  • Weatherization that includes storm windows and doors, insulation, etc.
  • Non-structural improvements for accessibility for persons with disabilities
  • Discretionary repair items that may not have been included in the appraisal, such as, repair of exterior decks, basement waterproofing, etc.

What types of properties are eligible?

One to Four Family Properties:

  • All types but must be owner-occupied
  • One to four family residential homes, which have been completed for at least one year
  • Homes that have been demolished or razed as part of the rehabilitation process are eligible as long as the existing   foundation system remains intact
  • Any property that the buyer wishes to convert (i.e. a single family property into a two to four family property, or a two to four family property into a single family property, etc.)


  • All improvements are required to be inside the condo
  • Must be owner-occupied

Mixed Use Properties:

  • All improvements are required to be made to residential portion only
  • Must be owner-occupied
  • Storefronts are eligible

Miscellaneous Guidelines

  • All properties must be at least one year old
  • New construction is not eligible
  • Commercial properties are not eligible
  • Required $5,000 minimum renovation cost

Only certain lenders are delegated the authority by the U.S. Department of Housing and Urban Development (HUD) & Federal Housing Authority to offer FHA 203(k). Inlanta Mortgage is pleased to offer the FHA 203(k) mortgage loan program. For more details on this program contact a licensed mortgage loan officer near you.The 203(k) program has been the primary tool of the Federal Housing Administration (FHA) for providing insured mortgages for the purchase or refinance of single family properties in need of rehabilitation. The standard program is available for homes with necessary major repairs, whereas the Streamline is available for homes in need of repairs on a smaller scale.*Inlanta Mortgage, Inc. NMLS #1016. Borrowers subject to credit approval. Programs subject to change without notice. This is not an offer to grant credit or a commitment to lend. Income and property restrictions apply. Inlanta Mortgage, Inc. is not acting on behalf of, or at the direction of, the Federal Housing Authority (FHA) or the federal government.