The question of what the FHA 203k loan can and cannot be used for is pretty easy to answer. And we hear it a lot. In fact we often hear: “Well, can I use the 203k for ___?” Sometimes it’s an easy answer. Yes, you can use the 203k to finance a kitchen remodel. You can also finance replacement windows. For the “no” response, we know that you cannot finance an outdoor barbecue pit.

We also know that the FHA 203k allows a borrower to buy a house that doesn’t meet the usual FHA requirements for health and safety, close on the loan then have the work done and the home brought up to the requirements. Once upon a time you’d have to have all of this work done before you even close on the loan.

Now that we’ve covered that, let’s look at what the FHA 203k loan can be used for.

  • Roof repair
  • Roof replacement
  • Replacement windows
  • New doors
  • Kitchen remodel
  • Bathroom remodel
  • Room additions
  • Add a second story to a ranch style home (no kidding!)
  • Waterproof a basement
  • Solve lead-based paint issues
  • Re-paint a house (inside and exterior)
  • Furnace and A/C replacement
  • Electrical system repair
  • Plumbing system repair/replacement
  • New floors – carpet, tile, laminate flooring, linoleum
  • Kitchen appliances
  • Driveway repair
  • Sidewalk repair
  • Grading issues in your yard to solve basement flooding problems
  • Well & septic repair or replacement
  • More – get creative and ask us if something is covered!

As you can see, there’s a lot the FHA 203k can be used for when it comes to home improvements, renovations, repairs, remodeling and upgrades. So if you’re wanting to get some work done around your house, you could consider the 203k as a “refinance and remodel” option. Or if you’re in the market for a new home and you want to find the perfect one, maybe it’s time to find a good structure and make it your dream home with the FHA 203k.

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