10 Simple Steps to Buying a Home Using an FHA 203k Renovation Loan

Home Inspector with Same Day 203Kla 323 309-9722 HUD I.D.# SO536

Same Day 203k Consulting-HUD Approved Since 1995

www.sameday203k.com               323 309-9722


10 Simple Steps to Buying a Home Using the FHA 203k Renovation Loan Program and Closing your loan in 30-45 Day’sSame Day 203 Logo.com


The FHA Section 203k Loan Features:

The Section 203k mortgage loan offers the borrower a single, long - term, fixed or adjustable interest rate loan that covers both the acquisition and rehabilitation of a property. 

 Unlike conventional interim acquisitions and improvement loans, which may have higher interest rates and short terms.


The cost of the home renovation must be at least $5,000, but the total value of the property must fall within the FHA mortgage limit for the area.

 The value of the property is determined by either property value before rehabilitation plus the cost of rehabilitation, or 110 percent of the appraised value of the property after rehabilitation, whichever is less.


203k lenders may charge additional fees - supplemental origination fees, fees to cover the preparation of architectural drawings, review of the rehabilitation plan and a higher appraisal fee.


Section 203k borrowers do not have to pay the upfront mortgage premium.


Additional 203k-loan information


  203K Eligible Borrowers:

 Owner Occupants - Purchase - Refinance

    Non – Profits

   Investors NOT allowed



 Eligible Properties:

Single family dwellings



Mixed Use (Storefront)

1-4 Unit buildings


Structural Alteration and Reconstruction:

Changes for improved functions and modernization

Changes for aesthetic appeal

Plumbing, heating air conditioning, and electrical upgrades

Well and/or septic repairs

Roofing, gutters and downspouts

Elimination of health/safety hazards

Flooring, tiling and carpeting

Energy conservation improvements

Access for the disabled


Home Inspection:                                                                 

Construction cost are estimated by an FHA approved

203k mortgage loan consultant (estimator). The HUD Approved 203k Consultant helps the homebuyer determine the scope of repairs by providing a work write-up and a construction cost break down for the renovation of the home.


Other Eligible Costs:


Up to 6 months PITI mortgage payments

Consultant fees

Permit costs

Inspection and title update fees

Contingency reserve (10%-20%)

Architectural & Engineering fees (if needed)




Comments (4)

Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Useful information!

Thanks for sharing.

i with simple would be simple. I called a bank reo agent today on their fixer that I'd like to send 203k....nope, they don't even want to hear it... Too bad, my buyer is a handyman, he wants to fix it and live there with his family, but he does not have so much cash.

Apr 19, 2013 07:00 PM
Same Day 203kla
Same Day 203Kla 323 309-9722 - Los Angeles, CA
HUD Certified 203k Consultant 323 309-9722

Morning Inna,

Here are three Mortgage Brokers who specialize in 203k renovation loans, I have worked with all three .. Any one of them should be able to help your client.


Daniel Prystupa <dprystupa@primelending.com>"Tom Huntley" <Tom.Huntley@prospectmtg.com>

Warm Regards,


Apr 20, 2013 02:34 AM
Same Day 203kla
Same Day 203Kla 323 309-9722 - Los Angeles, CA
HUD Certified 203k Consultant 323 309-9722


Los Angeles, CA


"Aaron was very knowledgeable and thorough on my house inspections. I also would like to add that he was always available on the phone for consultations and he took my house project like if it was his, helping me many times with decisions that eventually saved me a lot of money and time. Thank you Aaron for all your help I am glad we worked together on my project".




  • Tiffany D.
  • Long Beach, CA

"My partner and I first met Aaron Baldwin in September of this year. After calling and interviewing several HUD consultants we knew Aarorn was our guy.  During our initial consultation, Aaron spent over an hour educating us on the 203k program and explaining not only his role in the process, but the roles of the lender and even ourselves as the homeowners.  His vast knowledge of this complex government program made us feel at ease.  

Aaron came highly recommended from several of the top leading lenders.  Hearing that confirmed that we were in good hands".

Thanks Aaron!


  • Jeff A.
  • Perris, CA

"I am writing this review regarding Aaron Baldwin and FHA 203-K CONSULTANT and the hard work and dedication he has put into being our consultant with our 203-K. Even though we have not completed the entire project yet,I don't believe we could have been luckier than the day we met him.
Same day 203-K which is Aaron's company has been a blessing for me and my family.
He is a honest, hard working consultant and the most knowledgeable person I have met in his field. I am a Realtor and meet many people in his line of work. Nobody
that I have met has the experience, commitment, or knowledge that Aaron has.
If you are looking for a consultant for your FHA Renovation project, you should call Aaron and hire him".

Thank You Aaron and

Jeff Atkins & Family


  • Amy M.
  • Frazier Park, CA

"Aaron helped us get through the renovation with as little stress as possible. He helped us with our contractor. He made renovating our new home easy. I can't say enough how wonderful of an experience this was".





Mar 06, 2014 08:38 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.   Thanks for sharing and have a nice weekend!

Dec 05, 2020 06:41 AM