203(k) Rehabilitation Loan

A 203(k) rehabilitation, also know as a renovation loan, is a simple solution for providing a single, long-term loan with either fixed or adjustable rates, that covers a home purchase (or refinance) and the remodeling cost of the same house — all in one transaction. This lets you buy a fixer-upper and get financing for both the home and the repairs. These loans are insured by the Federal Housing Administration and have less-strict requirements than typical renovation loans. A 203(k) rehabilitation loan isn’t based on the current price of the home, but on the projected value after specific renovation and repairs are made.

203(k) rehabilitation loan features:


203(k) limited loan

Provides up to $35,000 for renovations, but major structural repairs aren’t eligible.


203(k) standard loan

Renovations must cost at least $5,000, and major structural repairs are eligible. Borrowers using a 203(k) standard loan must hire a HUD consultant to oversee the renovation process.

What types of renovations are eligible with a 203(k) rehabilitation loan?

HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.


Structural alterations and reconstruction


Modernization and improvements to the home's function


Elimination of health and safety hazards


Changes that improve appearance and eliminate obsolescence


Reconditioning or replacing plumbing; installing a well and/or septic system


Adding or replacing roofing, gutters, and downspouts


Adding or replacing floors and/or floor treatments


Major landscape work and site improvements


Enhancing accessibility for a disabled person


Making energy conservation improvements

Is a 203(k) rehabilitation loan right for you?

Are you trying to purchase a home that needs repair or modernization? A 203(k) rehabilitation loan might be just what you need. Purchase the home and get enough funds in your loan for both the cost of the home and repairs.

Why choose SecurityNational Mortgage for your 203(k) rehabilitation loan?

We’re experts with deep experience in underwriting, processing, and closing on 203(k) rehabilitation loans. Let our professionals guide you through the experience!

This is not a commitment to make a loan, nor should it be construed as lending advice. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. SecurityNational Mortgage Company is an Equal Housing Lender NMLS# 3116.

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