Work Wonders with an FHA 203(k) Loan

Thinking about buying a fixer-upper? With an FHA 203(k) rehabilitation home loan from CrossCountry Mortgage, Inc. you can finance a variety of repairs into your loan.


Buying a house that needs rehabilitation can often be a complicated and costly process. Repairs can drain your savings or investments. Interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. An FHA 203(k) Streamline loan can save you time and money because it combines the purchase cost and the repair cost into a single fixed rate or adjustable rate mortgage.

An FHA 203(k) loan may allow you to consider a home that needs rehabilitation if you’re looking to purchase. With this type of loan, you may benefit from lower interest rates and costs associated with repairs and modernization as compared to financing repairs through other methods like home equity lines of credit, credit cards or personal loans. The interest you pay on your mortgage may be tax deductible, and repairs aren’t stretched out over months or years. You can customize the home to meet your needs. Improvements may also increase home value and resale marketability. However, more parties and steps are involved with FHA 203(k) loans, including appraisers, consultants, contractors, and inspectors. Additional costs may apply.


  • U.S. citizens
  • Permanent resident aliens
  • Qualified non-profit organizations
  • Qualified non-permanent resident aliens
  • State and local government agencies


  • Foreign nationals
  • Corporations or limited liability companies (LLCs)


The property must have been completed for at least one year.

  • 1 to 4-unit attached and detached single family residences and planned unit developments
  • FHA-approved condos
  • Mixed-use developments (conditions apply)
  • Modular homes


  • Cooperatives
  • New construction
  • Manufactured homes
  • Properties with non-conforming construction that cannot be remedied


Homes must be occupied by the owner. No second homes or investment properties. Transaction must be a purchase loan or refinance. Identity of interest (buying from a relative or business partner) is not permitted. Loans are subject to certain appraisal and construction requirements

The FHA 203(k) Streamline loan is a great option for minor, non-structural repairs. The loan allows you to finance up to $35,000 in repairs with no minimum repair cost required. An additional $2,000 is allowed for energy efficiency items, such as windows. Consultants from the U.S. Department of Housing & Urban Development (HUD) aren’t required, and you may use up to three approved, licensed and insured contractors. Work must be started within 30 days after closing and completed within 6 months of closing. A minimum 10% contingency is required. Contractors will be paid in two installments — 50% upfront and the final payment upon completion.

Eligible non-structural repairs include:
  • Roofs, gutters and downspouts
  • Existing HVAC systems
  • Plumbing and electrical systems
  • Flooring and carpeting
  • Interior and exterior paint
  • Appliances (purchase and installation)
  • Accessibility improvements
  • Exterior decks, patios and porches
  • Basement finishing (non-structural)
  • Basement waterproofing
  • Weatherization upgrades
  • Window and door replacements
  • Wall residing
  • Septic and well systems

If you have any questions about FHA 203(k) Streamline home loans, contact us. We’ll answer your questions and walk you through the financing process from start to finish.

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