The 203k, FAQ style.

A government-backed mortgage that lets you buy a home AND finance the renovation in one loan, with just 3.5% down. Insured by the Federal Housing Administration (FHA) and available through approved lenders like us.

A regular FHA loan only covers the purchase price - and it requires the home to be in move-in-ready condition. The 203k covers purchase AND renovation, and actually allows homes that need work.

Yes. If you already own the home and want to renovate, you can refinance with a 203k and wrap the renovation costs into the new loan.

Not a pure investment. The 203k is for primary residences only. However, you can use it on a 2–4 unit property if you live in one of the units (this is called house hacking).

580 for 3.5% down. 500–579 works with 10% down. Some lenders require higher - we work with scores other lenders turn away.

Generally 56.9% or below, though we can sometimes go higher with strong compensating factors (reserves, great credit, stable income).

No. Anyone buying a primary residence can use a 203k.

Yes. Family gifts are allowed with proper documentation (a gift letter and source documentation). You can also use down payment assistance programs where available.

Up to your county's FHA loan limit. In 2026 in Illinois, that's $541,287 for a single family home - and higher for 2–4 unit properties. The total loan (purchase + renovation) must stay under that cap.

Typically 0.75%–1.0% higher than a standard FHA loan. Rates change daily - call us for today's pricing. In the current environment, 203k rates are still competitive with other mortgage options.

Yes. FHA loans require an upfront mortgage insurance premium (1.75% of the loan, usually rolled into the loan) plus an annual premium (paid monthly). This can be removed later by refinancing into a conventional loan once you have enough equity.

45–60 days on average. A bit longer than a regular mortgage because of the extra inspections and contractor coordination.

Limited self-help is allowed, but most of the work must be done by licensed contractors. And you can't pay yourself for your own labor from the loan proceeds.

Luxury items: pools, tennis courts, outdoor kitchens, gazebos, fire pits. Movable furniture. Detached structures generally. Commercial additions.

$5,000 for a Standard 203k. No minimum for a Limited.

6 months for a Limited 203k. Up to 12 months for a Standard 203k.

Minor changes are allowed with lender approval. Major changes can trigger a re-underwrite. Talk to your consultant before making changes.

Every 203k includes a contingency reserve (up to 20% of the rehab budget) for exactly this reason. If you go over that, you'd have to cover it out of pocket - which is why good contractor bids and consultant involvement matter.

Depends on scope. If the home is livable, yes. If not, you can finance up to 12 months of mortgage payments into the loan so you're not paying rent and a mortgage at the same time.

Funds stay in escrow until work is verified as complete. If a contractor walks off, the lender, consultant, and you work together to bring in a replacement and complete the project. This is another reason working with experienced 203k contractors matters.

You do - but the contractor has to be licensed, insured, and approved by the lender. We have a vetted network if you don't already have someone.

Licensed in nearly every state except New York. Illinois is our home base, but Jay's team handles files nationwide.

Pre-qualify online in 60 seconds, or book a call with Jay directly. Either way, we'll know your buying power within the same business day.