FHA 203K Loan (Rehab)

The FHA 203(k) loan is a government-backed program that helps homebuyers and homeowners finance both the purchase (or refinance) of a property and the cost of its renovation or repairs in a single loan. It’s especially useful for buyers interested in fixer-uppers and those wanting to customize or modernize their homes.


Key Benefits of the FHA 203K Loan

Dreaming of owning a home with unique character, but worried about the cost of updates? The FHA 203(k) loan makes it possible to buy a house that needs some TLC and turn it into the home you’ve always imagined.

In a tight housing market, this loan is a game-changer: you can buy that charming fixer-upper and roll the cost of renovations into a single, affordable loan.

Perfect for first-time buyers with a love for classic architecture, the FHA 203(k) lets you unlock a home's full potential while building equity right from the start.

Tired of losing out in bidding wars? Create your own opportunity with this powerful tool to buy a house full of character and turn it into your dream home!  

Who is  FHA 203K  good for?

    • Buyers who prefer "classic" older architecture over modern new builds.
    • Buyers who want to build instant equity.
    • Buyers who are having trouble winning the bid when competing with other buyers.

Special Features of an FHA 203K Loan

    • Single Loan for Purchase and Renovation: Combines the home purchase and renovation costs into one convenient loan.
    • Low Down Payment: As low as 3.5% down, making it accessible for more buyers.
    • Flexible Credit Requirements: FHA backing allows for more lenient credit standards.
      • Increased Home Value Potential: Financing improvements upfront can boost property value and equity.

Why Choose Groves Capital for Your FHA 203(k) Loan?

For many, buying a classic older home and making it their own is a dream—but it often comes with challenges. Renovations typically require licensed professionals, which can add costs beyond what first-time buyers anticipate. The FHA 203(k) loan solves this problem by combining home purchase and renovation costs into one, low-down-payment FHA loan. You still benefit from FHA’s accessible requirements—like 3.5% down, a 50% debt-to-income ratio, and a minimum 620 credit score.

With Groves Capital, you’re guided through each step of the process. We connect you with professionals experienced in FHA 203(k) renovations, ensuring quality and compliance. For projects exceeding $75,000, HUD assigns a consultant to oversee the renovations, so your investment makes sound financial sense. By completing a full loan application and gathering all necessary documentation upfront, we ensure a smoother, less stressful experience from start to finish.