Options and FAQs

Up to this point, we talked about buying a property with the FHA 203K loan program, but you can also use it to refinance your home.

If you already own a home and want to fix it up, but don’t want to take out a personal loan or home equity loan, you can use the FHA 203K loan program.

You must make at least $5,000 in renovations and the after-repaired value must be high enough to account for the loan. In other words, the renovations must improve the home’s value.

Is an FHA 203K a good idea?

The FHA 203K loan is an affordable way to make home renovations or buy a home that otherwise wouldn’t pass an appraisal. After the renovations, you earn instant equity in the property, and the home looks and feels just how you want it.

Is it hard to get an FHA 203K loan?

Like a standard FHA loan, the FHA 203K loan has flexible underwriting guidelines. Most borrowers get approved with a credit score of just 580 and higher than average debt ratios. The FHA guarantees the loans for lenders, so it’s not hard to qualify for it in most cases.

Do FHA 203K loans only have a fixed rate?

Like any loan, you can choose between a fixed-rate or adjustable-rate for your FHA 203K loan. If you want to take advantage of low introductory rates, you can choose the ARM loan. If rates increase in the future and/or you want to refinance to a fixed rate, you should have equity in the home to be able to do so.

How long does it take to close an FHA 203K loan?

How long it takes to close an FHA 203K loan depends on the type. Limited 203K loans close faster than standard 203K loans, but on average they take 45 – 60 days. It depends on the speed of the contractors, loan consultants, and appraisers that are involved in the process.

How long must you live in the home after 203K financing?

Because you promise to live in the home as your primary residence, you must live in it for at least 12 months after the loan to avoid being accused of mortgage fraud.

Final Thoughts

The FHA 203K loan is a great way to buy a home and renovate it with one loan. You don’t have to worry about qualifying for multiple loans or dealing with multiple loan payments.

Everything is wrapped into one loan, giving you access to funds to renovate your home the right way. Together, you, your contractors, loan consultant, and underwriter will get your loan closed so you can get the renovations underway.

The FHA 203K loan is a great way to earn equity in a home right away, while also making the home just how you want it. You don’t have to worry about buying the home for cash or finding creative ways to finance the changes.

Are you looking to get Pre-Approved?


The Standard 203(k) may be used to purchase or refinance a home that needs remodeling and/or structural repairs. There is a minimum rehabilitation cost of $5,000 and the use of a 203(k) consultant is required.

Max completion time: 180 days (6 months)

Landscaping and hardscaping allowed

$5K minimum and no max repair amount

Structural changes are allowed


The Limited 203(k) may be used to purchase or refinance a home that needs minor remodeling and non-structural repairs not exceeding $35,000. The use of a 203(k) consultant is not required and there is no minimum rehabilitation cost.

Minor remodeling

HUD consultant is not required

Max completion time: 90 days (3 months)

No min and up to $35K in total renovations

Our goal is to provide excellent customer service.

Lori H

I’ve had the best experience for being a first time homebuyer,everyone was beyond helpful and explained all the steps in detail to someone with zero knowledge of the home buying process.

David A

My City was fantastic to work with. They were extremely knowledgeable and answered all questions quickly.

James S

Honestly, the process of me receiving and acquiring my mortgage was professional, efficient, and satisfying. I want to thank everyone at My City for they have done for me.

About the loan

This loan program provides financing to buy fixer-uppers and to fix them up all in one loan. It’s a great loan program that helps people buy homes they want and make them look how they want all without breaking the bank.

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