September 12, 2025

Love a Home But It Needs Repairs?

Ever find a home in your dream neighborhood but see the “needs work” sign and think, “Nope, not for me”? If you’re an FHA buyer, there’s a way to make it happen. Enter the FHA 203k loan, a program designed to help buyers purchase homes that need a little TLC and roll the repair costs into one mortgage.

What Exactly Is an FHA 203k Loan?

Think of it as a “buy now, fix later” solution. Instead of shelling out your money for repairs, the FHA 203k loan lets you finance up to $75,000 in improvements right into your mortgage. That means you can buy a home as-is, get it fixed up, and move in…all under one loan.

How It Works in Real Life

Here’s an example:

• The home costs $300,000 and needs $75,000 in repairs.
• The home is appraised at $300,000 as-is, and at $375,000 after repairs.
• If the numbers check out, you can buy the home and complete the renovations with one FHA loan.

It works just like a regular FHA loan in terms of qualification, so no extra hoops. Just a bit of planning for the renovation work.

What to Know About Timing and Contractors

Escrow can usually be done in 30 days, although sometimes it can take a little longer to coordinate with contractors.

Repairs must be completed within 6–9 months.

Work must be done by a licensed California contractor (in California).

Why This Could Be Perfect for You

If you’ve found “the one” in the neighborhood you love but it needs work, a 203k loan could be your ticket to making it yours. You get the home you want, the ability to customize, and the peace of mind that the FHA program has your back.