Buy It. Fix It. One FHA Loan.
The FHA 203(k) finances the home and the work in one loan. Which version you need, Limited or Standard, depends on whether the job is cosmetic or structural.*
One loan for the home and the work.
Credit that is still healing does not have to stop you.
- Standard documentation: income, assets, and credit
- Low-down-payment options for qualified buyers*
- First-time and repeat buyers welcome
- Purchase or refinance owner-occupied primary homes*
- Purchase and rate and term refinance, with low-down-payment options*
- FHA mortgage insurance applies, and how long it stays depends on your loan*
Limited 203(k) caps repairs at $75,000, with no minimum*
Structural work and room additions require Standard 203(k)
Owner-occupied primary residence
A consultant is optional on Limited, required on Standard
Self-help is not allowed on either version*
Fixed-rate and adjustable-rate (ARM) options
What is the Saxton FHA 203(k) Loan?
A government-insured home loan from the Federal Housing Administration
The Saxton FHA 203(k) Loan is a full-featured mortgage that is a government-insured renovation loan that combines buying (or refinancing) and improving a home into one loan and one payment.
Qualify with standard documentation: income, assets, and credit reviewed the usual way.
Use it to buy or refinance an owner-occupied primary residence and finance the renovation in the same loan, within FHA loan limits.*
Why choose the Saxton FHA 203(k) Loan?
Built for buyers who found the right location and the wrong condition.
Limited 203(k)
For uncomplicated work that needs no plans, engineers or architects. Repairs cap at $75,000 with no minimum, and a consultant is permitted but not required.*
What Limited Covers
Plumbing, heating, AC and electrical; roofing that does not affect structural integrity; siding, gutters, decks, patios and porches; wells and septic; accessibility work; energy improvements; appliances; smoke detectors.
What Limited Will Not Cover
Moving a load-bearing wall, room additions, repairs to structural damage, anything needing architectural drawings, and landscaping. Those need Standard 203(k).
Standard 203(k)
For major rehabilitation. A HUD consultant prepares the Work Write-Up and Cost Estimate, draws are released in stages, and mortgage payment reserves can be financed.*
Draws And Contingency
On Limited, no more than two draws per contractor and no holdback required. A contingency reserve is not mandated, but where one is set it cannot exceed twenty percent of the financeable repair costs.*
You Cannot Do The Work Yourself
Self-help is not allowed on Standard or Limited. The work goes to a licensed, bonded contractor whose bids the lender reviews against usual and customary cost.
Hear From Homeowners Like You
Frequently Asked Questions
The questions we get asked most about the FHA 203(k) Renovation Loan.
FHA county loan limits apply to the mortgage overall. Separately, Limited 203(k) caps the repair portion at $75,000 with no minimum. If the work costs more than that, or is structural, the file moves to Standard 203(k).*
Yes. FHA loans are a popular choice for first-time buyers, thanks to flexible credit guidelines and low-down-payment options.*
Limited is for uncomplicated work that needs no plans, engineers or architects, capped at $75,000 in repairs. Standard is for major rehabilitation, and it requires a HUD consultant who prepares the Work Write-Up and Cost Estimate. Moving a load-bearing wall, adding a room, repairing structural damage or anything needing architectural drawings all require Standard.*
The FHA 203(k) uses flexible FHA credit guidelines; your options depend on your full profile.
FHA is built around a small down payment, and the exact requirement depends on your credit profile. Gift funds are allowed on an eligible purchase.*
No. Self-help is not allowed on Standard or Limited 203(k). The work has to go to a contractor who meets licensing and bonding requirements, and the lender reviews the bids against usual and customary cost for similar work.*
No. Cash-out refinance transactions are not eligible on a 203(k). The program finances the purchase or the rate and term refinance together with the renovation.
Find out what you qualify for
Whether you’re buying a home that needs work or renovating the one you own, there’s likely a Saxton FHA 203(k) Loan program that fits. Get a fast, no-obligation pre-qualification today.
Get Pre-Qualified- U.S. Department of Housing and Urban Development, FHA and housing resources
- U.S. Department of Housing and Urban Development, FHA mortgage insurance premiums
*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. FHA loan limits are set by county by the Federal Housing Administration. Down payment and cash-out limits vary by occupancy, credit score, and documentation type. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.