FHA 203K Question? Post it Here

Do you have a FHA 203k question you’d like to ask a 203K Specialists?  Just post it here on the blog.

Scroll down all the way to the bottom of this page (the QA post page) and type your question in the “Leave a Reply” box and press “Submit”

Your question does not have to be FHA 203K related, it can be general FHA or Conventional questions as well.   A 203K Specialists will answer your question the best to their ability.

We look forward to hearing from you!

“Your FHA 203K Mortgage Lender”






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  • lisa

    Reply Reply September 18, 2017

    I am wanting to buy a fixer upper in Illinois at 40,000 with an additional 30,000 in renovations. I have very poor credit (480) from bankruptcy that has been dismissed. I can make the payments with no problem. Can I Qualify with poor credit?

    • 203K Mortgage Lender

      Reply Reply October 11, 2017

      Hi Lisa

      When it comes to minimum credit scores each lender will have their own threshold. For the most part many of them like to see a 620 middle score but there can be exceptions depending on the lending scenario. Don’t hesitate to contact one of the lender’s so that at least you know what the possibilities are to move forward.

      Best of luck

  • Sara

    Reply Reply August 22, 2017

    Have to have down payment or closing costs for FHA 203k?

    • 203K Mortgage Lender

      Reply Reply August 29, 2017

      Hi Sara,

      Yes, down payment & closing cost need to be covered but…The FHA 203K (with renovations) follows the same FHA guidelines as the FHA 203b (without renovations) so that means your down payment can come from a gift (from an acceptable source) and closing cost can come from a gift as well or seller contributions.

      Best of luck

  • beth

    Reply Reply August 11, 2017

    I am buying a house with the 203k loan are you allowed to live in the house while the upgrades and renovations are being done?

    • 203K Mortgage Lender

      Reply Reply August 28, 2017

      Hi Beth,

      You are more than welcome to live through all the dust and noise during your renovation but you can also finance a few months of payments to avoid all that chaos as well. It must be a full 203k version and of course must be decided beforehand.

      Best of luck

  • James Graner

    Reply Reply July 27, 2017

    Does HUD keep statistics on how many 203K mortgages are written?

  • Michelle

    Reply Reply July 20, 2017

    We’re in the renovating portion of our 203k loan. In the work order/contract submitted with our 203k paperwork, it includes replacing the front door. This was not mandatory, but a cosmetic change we’ve now decided that we do not want done. Our lender is saying we have to have the door installed since it was in the original scope of work. Is this true? We understand that there were mandatory renovations that would have to be done as part of the loan – but why can’t we change our mind on something as minor as a front door replacement?

    • 203K Mortgage Lender

      Reply Reply August 28, 2017

      Hi Michelle,

      The “Rule of Thumb” is that you may be able to ADD/UPGRADE to the scope of work but you cannot DEDUCT/DOWNGRADE. You’re correct in that certain work is mandatory and other work isn’t however In the needs-analysis stage of the loan, the work you have to do (mandatory) must be bid out first and then anything else (optional) is added to that to yield your complete contractor bid on repairs to be done. The appraisal is then done based on the total work and your loan is underwritten accordingly.

      So, if your loan had not closed yet and you changed your mind on the optional items, it’s possible to change the scope of work then, however once the loan closes, all work agreed to be done, _must_ be completed.

      Best to you

  • Jessica

    Reply Reply April 19, 2017

    We are thinking about acquiring a 203k loan. We were told that the homeowner cannot do ANY of the construction work/remodeling. The homeowner works for a construction company and we would be hiring his company. Is it true that he would have to be hands-off during the construction process? If so, why? What are the laws?

    • Hello Jessica,

      Although HUD/FHA sets base guidelines for lenders not to exceed, Lenders will have their own specific overlays to those guidelines because at the end of the day it’s the Lender’s responsibility to draw a line on what constitutes responsible lending. These overlay guidelines would also apply to any self-help work for FHA renovation loans to assure no conflict of interest and full completion of work as originally agreed.

      Best of luck

  • KCR

    Reply Reply March 12, 2017

    We are looking to purchase a home with the 203k loan. We are wondering what qualifies as rental income. We currently own a single family home and we rent out the in-law suite in our basement. It gets claimed on our taxes every year for the past 3 years and we have a rental agreement in place. Can we use this income to help us qualify for the loan even though it is a single family home?

    • Hello KCR,

      What you’re referring to is called “boarder income”. It’s allowed on FHA transactions (203b, 203k,etc) if you’ve claimed it in your two most recent tax returns, so in your case, you’ll be able to use that income. Be prepared to provide a lease. Please note that on a purchase transaction, you’ll need to document the intent to continue boarding.

      Best of luck

  • LISA

    Reply Reply March 2, 2017




    • Hi Lisa,

      On minimum credit scores for FHA insured loans it’s best to ask your lender(s) as they can vary depending on your personal scenario and lender. Just an FYI…FHA loans without renovations will most likely have more flexibility than FHA loans with renovations.

      On the repairs…”Yes” you’re correct, the 203k loan will take care of those issues and more.

      Best of Luck

  • Joseph Westcott

    Reply Reply March 2, 2017

    Can the purchaser of home do the renovation work himself with a 203k streamline loan

    • Hello Joseph

      It is possible for a purchaser to do some of the renovation but really depends on the lender, the type of work and the purchaser’s qualifications to complete it. Because, all work is calculated with material & labor regardless of who completes it there is usually a high probability it will get done by a third party.

      Best of Luck

  • linda bowers

    Reply Reply November 28, 2016

    Can I get a 203k loan for commercial property in florida?

    • 203K Mortgage Lender

      Reply Reply January 16, 2017

      Hello Linda,

      203k financing is primarily for residential 1 to 4 unit properties with some exceptions for mixed use properties which can be eligible depending on the percentage of commercial use but if approved the renovation funds must be used for residential functions.

      Best to you

  • BKT

    Reply Reply November 28, 2016

    I completed a loan modification more than a year ago where about one-fourth (or $50K) of the principle was deferred. At some point in the next few years I’d like to renovate a dilapidated detached two-story garage-like structure that is at the back of my property into a by-right ADU for the purposes of renting and generating income (FYI: When I purchased my home in 2007 using a 203k, an inspector quoted $75K as an estimated renovation cost for the garage). In a addition to the ADU, I’d like to make significant renovations to the main house (I do not have a quote for these renovations). My question is, how does all of the above play into the amount of a 203K loan I may qualify for?

    • 203K Mortgage Lender

      Reply Reply January 20, 2017

      Hello BKT,

      With the timeline you detailed, it’s too soon to know how your new 203K Lender guidelines will come into play with a Loan Modification in your credit profile. The typical wait period is 12-months but many lenders have their own guidelines and overlays so you’ll need to keep that in mind as you move forward.
      Pertaining to the ADU, this is something else that can’t be answered without more details. A true ADU cannot be used to generate income since they are considered part of the main dwelling unit (a single family residence). If you have the proper zoning for multi-family dwellings, than a Second Unit could be an option but you’d need to check with your local governing jurisdiction.

      Best to you on your future renovation plans.

  • Thomas

    Reply Reply November 23, 2016

    I am looking at purchasing a hud home that has mild mold problems in the basement from a busted pipe. My lender keeps telling me that I can not do mold repairs as part of the post closing repairs with a 203k loan. This home is only a coue of years old and this is the only problem with the house and it’s only a 3200 repair from a certified contractor. Can someone please give me guidance if there is a loan that will allow for thesending kind of repairs?

  • oyoo

    Reply Reply November 7, 2016

    I was approved for fha 203k. My offer accepted and ratified. But when it came closing time, HUD’S consultant inspected the house and recommended twice the amount previously approved for renovation. My Lender doesn’t want to approve no more money. What should I do to get more?
    Thanks. Oyoo

    • 203K Mortgage Lender

      Reply Reply November 15, 2016

      Hello Oyoo,

      It’s unfortunate that you’re having issues especially at this juncture. The HUD Consultant inspection is one of the “FIRST” steps and there’s usually no reason for another HUD inspection prior to closing. When the HUD Consultant does the inspection (usually right after your offer is accepted), the results of that inspection are bid out by your chosen contractor and those figures are presented to the Lender.

      So, without knowing where the first renovation amount came from that your lender was initially working with, it would be a good idea to figure out what went wrong there and see if some type of compromise can be worked out. If not, then get in contact with another lender and find out if you have another alternative.

      Best of luck.

  • Kirstin

    Reply Reply October 4, 2016

    My fiancé and I are looking into buying a property with a foreclosed home on it. We are not sure of the shape of the home on the inside but the outside looks very rough. We are really wanting to build our own home and I know that the FHA loan would allow us to do so, but my question is would we be able to buy this property with a house already on it and tear that down to build a bigger home or does it have to be the same size as the one that was previsoily there?

    • 203K Mortgage Lender

      Reply Reply October 8, 2016

      Hello Kirsten,

      “Yes” your plan to use an FHA 203k Loan to buy a property, tear it down and rebuild a bigger home than the current one is allowed. The existing foundation must be used but can be extend if needed and you would need to use the full 203k version along with a HUD consultant of your choosing.

      Best to you and your fiancé

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