Most repairs and upgrades that make a home safer, more livable, or more efficient.
An FHA 203(k) can fund a wide range of work, from a new roof to a full remodel, as long as it is a permanent improvement that fits HUD rules. Ken Clark Jr. helps buyers sort the wish list into what can be financed, what cannot, and which 203(k) version it needs.
Short answer: buying (or refinancing) a home and paying for repairs and improvements in the same FHA loan. The work generally must be permanent, add value or livability, and leave the home meeting FHA property standards.
HUD describes the program as a way to combine the cost of rehabilitation or repair with the purchase or refinance of a one- to four-unit home in a single mortgage. HUD lists uses such as eliminating health and safety hazards, structural alterations and additions, and repairing or replacing plumbing, heating, air conditioning, and electrical systems. See HUD's 203(k) consumer fact sheet and the 203(k) program page.
Short answer: most permanent work on the home itself.
| Category | Common examples | Limited | Standard |
|---|---|---|---|
| Health and safety | Peeling paint, missing handrails, broken steps, code issues | Yes | Yes |
| Roof and exterior | Roof, gutters, siding, windows, doors, exterior paint | Yes | Yes |
| Systems | Furnace, air conditioning, water heater, electrical panel, plumbing, sewer or septic repair | Yes | Yes |
| Kitchens and baths | Cabinets, counters, fixtures, non-structural layout updates | Yes | Yes |
| Interior finishes | Flooring, drywall, paint, trim | Yes | Yes |
| Energy and weatherization | Insulation, efficient windows and HVAC | Yes | Yes |
| Accessibility | Ramps, wider doors, accessible bathrooms | Yes | Yes |
| Built-in appliances | Permanently installed appliances as part of a remodel, depending on guidelines | Often | Often |
| Structural | Load-bearing walls, foundation, framing | No | Yes |
| Additions and conversions | Room additions, finishing attics or basements | No | Yes |
Final eligibility depends on HUD guidelines, the appraisal, and underwriting. This is a planning guide, not a promise that any specific item will be accepted in your loan.
Short answer: luxury items, such as installing a new swimming pool, and work that is not a permanent improvement to the home. The Limited 203(k) also excludes structural work.
HUD's intent is that the money goes to making the home safe, sound, and livable, not to recreational extras. Items that commonly raise questions include new pools and other recreational amenities, items that are not attached to the home, and anything outside the reviewed scope. Because HUD's detailed lists live in Handbook 4000.1 and can change, we review your exact wish list against the current handbook before you rely on it.
Repairing an existing feature is treated differently from adding a new luxury feature. If a line item is borderline, ask before the bid is finalized.
Short answer: up to $75,000 total rehabilitation cost on a Limited 203(k). On a Standard 203(k), at least $5,000, with the total loan capped by the FHA county limit and the as-completed appraised value.
The rehabilitation cost usually includes the contractor bids, a contingency reserve, permits, and certain fees, and on a Standard it may include up to 6 months of payments if the home is uninhabitable. See Limited vs Standard for the full comparison.
Short answer: plan on hiring a contractor. The lender reviews each contractor's license, insurance, and bid, and do-it-yourself work is rarely a fit for a 203(k).
Borrower-performed work is limited and subject to lender guidelines and documentation. Most buyers are better served by a qualified contractor for the whole scope. See 203(k) contractor requirements.
Educational illustration only. Not an actual client, loan offer, or commitment to lend.
A buyer's list for a 1978 two-story: new roof ($16,000), furnace and AC ($13,500), kitchen cabinets and counters ($22,000), refinished floors ($6,500), a new in-ground pool ($55,000), and an outdoor kitchen ($18,000). The roof, systems, kitchen, and floors total $58,000 plus contingency and fit a Limited 203(k). The pool is a luxury item and is not eligible. The outdoor kitchen would need review and is likely to be cut. The buyer finances the core work now and plans the extras later with savings.
More on the consultant's work write-up at 203(k) consultant.
Where available: PRMG renovation programs are available in every state where PRMG is licensed, which is all states except New York, including California and New Jersey, for eligible borrowers and subject to underwriting and program guidelines.
Answered by Ken Clark Jr., Certified Mortgage Advisor. Program availability and requirements vary and are subject to change.
Repairs and improvements that are permanently part of the home, such as roofing, HVAC, plumbing, electrical, kitchens, bathrooms, flooring, windows, energy and accessibility upgrades, and health and safety repairs. The Standard version also allows structural work and additions.
No. HUD treats a new pool as a luxury item that is not eligible.
Yes. Kitchen remodels are common on both versions, as long as non-structural work stays within the Limited cap or structural work goes through a Standard.
Yes, on a Standard 203(k) with a HUD roster consultant, subject to the appraisal and FHA limits. The Limited does not allow additions.
Permanently installed appliances that are part of a remodel may be eligible, depending on guidelines. Freestanding items are commonly excluded. Ask before finalizing the bid.
Work needed for safety, drainage, or to protect the home may be eligible. Purely decorative landscaping is generally not a fit.
The Standard 203(k) requires at least $5,000 of repairs. The Limited is capped at $75,000.
Plan on a contractor. Do-it-yourself work is limited and subject to lender guidelines.
Yes, up to 9 months on a Limited and up to 12 months on a Standard.
HUD allows one- to four-unit properties, as long as you live in one unit as your primary residence, subject to FHA limits and underwriting.
Guidelines change. Verify current program requirements with Ken Clark Jr. before relying on them for a transaction.
Disclaimer: This content is for educational purposes only and is not a commitment to lend, a guarantee of approval, or a rate quote. Loan programs, down payment requirements, terms, and eligibility depend on borrower, property, project, builder, and program qualifications, are subject to underwriting, and vary by state. Not all applicants or projects will qualify. Builder registration is a documentation review for program eligibility and is not an endorsement of any builder. Equal Housing Opportunity. Paramount Residential Mortgage Group, Inc. (PRMG), NMLS #75243. Ken Clark Jr., NMLS #225375. PRMG is licensed in 49 states, excluding New York.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
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