FHA 203K Renovation Loans


The FHA 203 (k) loan allows a borrower to purchase or refinance and rehabilitate a property with one loan closing. The projected rehabilitation costs are held in an escrow account and disbursed as work is completed and inspected. The loan amount is based on the projected market value of the property when all repairs are completed.

An important tool for community and neighborhood revitalization, the FHA 203(k) loan offers flexible qualifying and low down payments: 


• FHA standard guidelines

• FHA down payment (3.5%)

• Flexible credit qualifying

• Purchase or Refinance and renovations all in one loan

• Purchase mortgages based on after improved value

• One closing and then repairs begin


The FHA 203(k) is the ideal product for distressed homes for sale. Contact your Guaranteed Financial Loan Originator to see how the 203(k) is the perfect loan for the “almost perfect” home.


One Valuable Program with Two Great Options


The Streamline Option– is available for smaller or simpler scenarios where the total cost of renovations adds up to $35,000 or less. There is no minimum dollar amount of repairs or improvements required.  (Note that the work cannot be structural in nature).

The Full or Consultant Option– is available for larger projects that are more than $35,000 or contain structural work (load bearing walls, etc.). This option requires the expertise of a trained HUD Consultant to help supervise the project. There is no limit on the total dollars you can spend, however FHA loan limits apply.

–         Loan terms for both options are the same; the only difference is the scope or nature of the work being completed.

–         Most homes can be completely remodeled in 60 days or less, but for larger projects you have up to six months to complete your dream renovations.


What type of repairs does a 203(k) loan cover?


• Roofs, Gutters, Down Spouts

• Heating and Cooling Systems

• Plumbing and Electrical Systems

• Kitchen and Bathroom Remodeling

• Basement Remodeling

• Expanding Attics

• Room Additions and Garages

• Window and Door Replacement

• Carpet and Flooring

• Painting and Siding

• Appliances

• Mold and Lead Paint Abatement

• Foundation and Water Damage

• Well and Septic Systems

• Contact Guaranteed Financial Mortgage Loan Originator for a detailed list


Why should I use an FHA 203(k)?


• Save money on utility bills and maintenance cost (make home ownership more affordable)

• Save on out-of-pocket costs

• Increase a home’s resale value (build immediate equity)

• Address any potential health and safety issues in your home.

• Improve the comfort and enjoyment of your home

• Take advantage of government-sponsored incentives designed to lower the cost of home ownership.


A Step-by-Step to Finding, Purchasing and Renovating a Home



Apply for a mortgage with one of Guaranteed Financial’s 203(k) Certified Loan Originators. We will review your application and loan documents to pre-approve you for a maximum payment amount and determine the best loan program to fit your needs.


Find Your Home

Look for a home that you can customize to become your dream home. The contract between you and the seller will be just for the purchase price. It will not include the funds to be used for your home improvements. Your Realtor will forward the accepted contract to your Loan Originator to finalize the financing.


Choose a Contractor

You must research and select a contractor to complete your improvements after the loan closes. Contractors must provide specific documentation to be accepted for use in the renovation program.


Purchase Your Home

Guaranteed Financial processes, underwrites and closes your loan with one of our many FHA 203k Lenders. You will go to settlement on your new home with an Escrow account established to complete your home improvement project.


Renovations Complete

Once your loan closes, your Loan Officer as well as your FHA appointed Renovation Concierge Manager will work with you and your contractor. This Manager will monitor the renovation process and distribution of funds, and is available to answer all of your questions. Most customers have this process completed within 60 days of closing (smaller projects can be completed in less than 30 days) but you do have six months total to complete the work.

Contact one of our Mortgage Loan Consultants to learn more about how a 203k loan may be the best fit for your situation.

FNMA HomePath


A foreclosed property can represent a great opportunity and a good value — but a HomePath property can offer even more. Some homes may qualify for special incentives, and many can be purchased with a low down payment and flexible mortgage terms through HomePath financing.


Interested in a real estate owned property (REO)?

Guaranteed Financial offers Fannie Mae HomePath Financing. This Real Estate Owned (REO) program provides you with a good opportunity to add value to your next home purchase and helps strengthen the community.

The HomePath mortgage program is available on fixed or adjustable rate terms for primary, secondary and investment properties.

 Key Benefits

  •  Low Down Payment
  •  No Appraisal Required
  •  No Mortgage Insurance
  •  Up to 6% Seller Contribution on Principal Residences to 97% LTV**


  •  You want to purchase a home with a low down payment
  •  You are interested in a Fannie Mae real estate owned property


HomePath financing, available only on Fannie Mae-owned properties, offers great benefits — a 5% down payment (as of November 16, 2013), no mortgage insurance, expanded seller contributions, and more. HomePath Mortgage is available for move-in ready properties for both owner occupants and investors — a limited number of HomePath lenders, Guaranteed Financial is one of them, also now offer HomePath Renovation Mortgages.  This loan (similar to FHA’s 203k Renovation Loan) provides both the funds to purchase and to renovate in one loan.

Look for one of these logos to identify a property that is eligible for either a HomePath or HomePath Renovation loan.

Properties with the HomePath Renovation Mortgage logo are eligible for special financing.


Benefits to You, the Buyer


  • As of November 16, 2013, HomePath loans require at least a 5% down payment that can be funded by your own savings, a gift, a grant; or a loan from a nonprofit organization, state or local government, or employer.
  • Flexible mortgage terms (fixed-rate or adjustable-rate).
  • Renovation amount based on appraisal “as completed” value.
  • No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
  • Expanded seller contributions for closing costs.
  • Available for primary residences, second homes, and investment properties.
  • Many condo project requirements are waived; ask your lender for details.


For more information or for a more detailed explanation of the renovation process, contact one of our Mortgage Loan Consultants.