What Is the FHA 203K Standard (Consultant K) Loan?

The FHA 203K Standard Loan is a popular renovation loan that was introduced
in the late 70’s to assist buyers in renovating homes with poor property
conditions making them ineligible for conventional financing.  Such
unsuitable property conditions can include any health hazard or safety issue, or
almost any livability standard that homeowners want to upgrade, such as floor
coverings and other finishes, plus new appliances.  The FHA 203K Standard
Loan is different from the FHA 203K Streamline Loan, because the remodeling
costs can go over $35,000.  These repairs can also be structural in nature
or add to the footprint of the home itself.  This loan can be applied to
any home, not just foreclosed properties.

Some key benefits to the buyer are:

  • Combining both purchase and remodeling costs in a single closing
  • Borrowing unlimited renovation funds (with appraisal)
  • Project review by a HUD consultant who provides a write-up
  • Can fix structural issues, move the home, or enlarge a home via an
  • Homes not eligible for other conventional loans can be funded


FHA 203k
Standard Loan