FHA 203(k) Certified Contractor

We’re proud to be an FHA 203(k) Certified Contractor because it means we can help increase home ownership opportunities and revitalize neighborhoods at the same time

What is an FHA 203(k) Loan?

An FHA 203(k) loan allows eligible homebuyers and homeowners to finance qualifying repairs and renovations as part of a purchase or refinance mortgage.

There are two types:

Standard 203(k)

Designed for major rehabilitation, structural work, and more complex renovation projects. Eligible improvements can include structural alterations, major remodeling, additions, foundation work, and certain conversions of one- to four-unit properties. Standard 203(k) may also be used when rehabilitation costs exceed the $75,000 limit for Limited 203(k), subject to applicable FHA mortgage limits and other program requirements. Rehabilitation costs must total at least $5,000, and an FHA-approved 203(k) Consultant is required.

Limited 203(k)

For minor remodeling and nonstructural repairs with total rehabilitation costs up to $75,000. For projects over $15,000, an inspection is required; for projects of $15,000 or less, the lender may determine whether an inspection is necessary. A 203(k) Consultant is optional for Limited 203(k), although a lender may require one.

Benefits of FHA 203(k) Loans

  • For Homebuyers – Finance eligible purchase and renovation costs through a single mortgage. Expand the range of homes you can consider by including properties that need repairs or updates. Depending on the project, renovations may be completed before or after moving in.
  • For Real Estate Agents – Help buyers consider properties that need repairs rather than limiting the search to move-in-ready inventory.
  • For Lenders – Work with an experienced renovation contractor capable of developing detailed scopes, estimates and completing work through the 203(k) process.

Important Restrictions to Keep in Mind

  • Eligible Renovations – Most repairs and renovations are permitted, including pool repairs, but luxury additions such as new pools, spas, and outdoor kitchens are not eligible.
  • Who Completes the Work – Most lenders do not allow buyers to perform the renovations themselves.
  • Multi-Family Properties – FHA 203(k) loans may be used for eligible two- to four-unit properties, provided the buyer occupies one of the units.

Ready to Discuss an FHA 203(k) Renovation?

Talk with an FHA-approved lender to determine your eligibility, then contact Genstone Construction at 312-471-2741 to discuss your renovation scope and project.

Visit the FHA 203(k) Website