Clark Harvey-The BBQ Mortgage Guy 801-557-8540 NMLS 1172332
Clark Harvey-The BBQ Mortgage Guy801-557-8540                NMLS 1172332

FHA 203k Rehabilitation Loan

Here are some of the 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.)



FHA letter 203k.pdf
Adobe Acrobat document [59.3 KB]
Top Questions about a 203k.pdf
Adobe Acrobat document [21.5 KB]
FHA 203k Example Calculation.pdf
Adobe Acrobat document [267.6 KB]



1st Rate Mortgage

3478 Chambery Ln

Riverton, UT 84065



PO BOX 1308 

DRAPER, UT 84020


Or you can reach us at

(801) 562-9100

NMLS# 1172332


Branch Location

3690 E. Fort Union Blvd

Suite 102

Cottonwood Heights, UT 84121

Ph: 385-355-3335

NMLS # 1525772 branch


You can also use our contact form

MLO# 240452

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