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FHA 203k Rehabilitation Loan

Highlights and Guidelines of The FHA Rehab Loan

  • Limited Repair
  • All standard FHA guidelines apply.
  • Allows borrowers to finance improvements/upgrades up to $35,000 into mortgage before move-in
  • May be purchase or refinance 1-4 family single family residences
  • Including HUD REO property
  • Cash-out refinances not allowed
  • Fixed or adjustable rate
  • Borrower & credit eligibility same as FHA programs
  • Energy Efficient Mortgage may be used in conjunction with Streamline (K)
  • One closing with rehab funds escrowed by Lender & disbursed as work is completed
  • Can be used to: Update homes, Correct health & safety issues, Pay for higher cost items – roof, etc


  • Repair/replacement of roofs, gutters and downspouts
  • Repair/replacement or upgrade of existing HVAC systems
  • Repair/replacement or upgrade of plumbing and electrical systems
  • Repair/replacement of flooring
  • Minor remodeling that does not involve structural repairs
  • Painting, both interior and exterior
  • Weatherization, including storm windows and doors, insulation, etc.
  • Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers, and microwave ovens
  • Accessibility improvements for persons with disabilities
  • Lead based paint stabilization or abatement
  • Repair, replacement, or addition of exterior decks, patios, and porches
  • Basement finishing, remodeling, or waterproofing that does not require structural repairs
  • Window and door replacements and exterior wall re-siding
  • Repair/replacement of septic systems and wells


  • Major rehabilitation or remodeling, such as relocation of a load-bearing wall
  • New construction, including room additions
  • Repair of structural damage
  • Repairs that require detailed drawings or architectural exhibits
  • Landscaping or similar site amenity improvements
  • Improvements that require a work schedule of longer than six months
  • Improvements that require a payment schedule of more than two payments per contractor
  • Improvements that result in work not starting within 30 days of loan closing
  • Improvements that require the homeowner to be displaced from the property for more than 30 days  (Generally, the property should be habitable immediately after closing.)

Click on a link to download an informational PDF.




3478 W Chambery LN
Riverton, UT 84065




UT LIC# 5493357  |  CO LIC# 100051743  |  CA LIC # CA-DBO240452  |  WY LIC # 7448  |  ID LIC # MLO-2080240452
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