For planning, not loan selection. A participating lender must confirm current rules, property fit, costs, and approval for the actual transaction.
At a glance
- Purchase / refinance
- Purchase + refinance
- Occupancy
- Primary home
- Renovation amount / key cap
- No separate rehab cap; FHA loan limits apply
- Structural work
- Yes, with approval
- Minimum project size
- $5,000 minimum rehab cost
- Consultant / oversight
- 203(k) consultant required
- Typical project fit
- Major / structural rehab
- Upfront material draw
- Confirm with lender
- Completion timeframe
- 12 months; extensions may apply
- Property types
- FHA property / condo rules apply
- Best when…
- Primary home + major or structural work
What to discuss with Sean and the lender
- What is it?
- An FHA purchase or refinance mortgage for eligible major rehabilitation and structural projects.
- Best fit / when to think about it
- A primary home needing major rehab, structural work, or a scope that will not fit the Limited path.
- Purchase / refi availability
- Purchase or refinance, subject to FHA and lender requirements.
- Occupancy / property considerations
- Generally an owner-occupied primary residence. FHA property, unit-count, condo, and condition rules need review.
- Typical project complexity
- Moderate to major projects, including eligible structural work and additions.
- Structural work?
- Potentially yes, with approved plans, scope, and lender review.
- Current renovation limit / key cap
- No separate $75,000 Limited rehabilitation ceiling; FHA mortgage limits, value, and program requirements still constrain the transaction.
- Consultant / oversight expectations
- A HUD-approved 203(k) consultant is required. Expect a work write-up, cost review, lender-controlled draws, and completion inspections.
- Common friction points
- Consultant availability, contractor and bid documents, scope changes, permits, draw timing, and repair deadlines.
- What do we need to confirm?
- Confirm structural scope and property eligibility, consultant requirements, financing limits, lender participation, and the project schedule.