828.348.1907 Zachery@GoPrime.com

Renovation Home Loan

203k Limited and 203k Standard

GoPrime Mortgage, Inc. offers an FHA Renovation Home Loan as just one of its many loan packages available. FHA Home Loans has been helping people since 1934.

For Questions: Call (828) 348-1907

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Reno Loan

Renovation Home Loan

Renovation Home Loan

The Federal Housing Administration (FHA) insures the loan so that we can offer you a better deal. Are you interested in:

  • Low down payments
  • Low closing costs
  • Easy credit qualifying
  • 203k Limited
  • 203k Standard

Many mortgage loan products which are well suited for first-time homebuyers, FHA loans have more relaxed requirements than conventional mortgages. In some cases, you can have a recent bankruptcy in your past and still qualify for a loan. Protected by the Federal Housing Administration, these loans may be attractive to first-time homebuyers for these benefits:

• Down payments for an FHA loan may be as low as 3.5% of the purchase price, not 20% or more.

• You can use a monetary gift for your down payment and closing costs.

• You can get either fixed or adjustable interest rates with an FHA loan.

• FHA loans are streamlined, so you need less paperwork, simplifying the process.

 Grants and down payment assistance programs help you cover closing costs.

What is an FHA Renovation Home Loan?


  • 203k Limited and 203k Standard option offered for both purchases and refinances
  • A Renovation Home Loan offers a solution to help borrowers obtain financing that covers property acquisition or rehabilitation.​

​To learn more about the benefits of FHA Renovation Home Loan, don’t hesitate to get in touch with us at 828-348-1907.

Renovation Home Loan


Renovation Home Loan

FHA203(k) Renovation Home Loan

Limited Features

203(k) Limited option is intended to help facilitate uncomplicated improvements/repairs.​

  • No minimum rehabilitation amount ​
  • Maximum $35,000 in total rehabilitation costs ​
  • It does not require an FHA HUD Consultant or a General Contractor​
  • Up to 3 licensed contractors allowed ​
  • Work to start within 30 days of the closing ​
  • Work to be completed within 90 days ​
  • 2 draws permitted ​
  • 50% of Contractor (s) Bid at Closing ​

Standard Features

Used to CONSTRUCT, REPLACE, or for ADDITIONS, Standard 203(k) additions are large scale add-ons, For complicated projects and cosmetic updates ​

  • Requires an FHA HUD consultant ​
  • The minimum cost of repairs is $5,000; no max repair amount ​
  • Contingency reserve 10-20% (determined by HUD consultant) ​
  • Work to start within 30 days of the closing
  • Renovation Home Loan work must be completed within 180 days of the closing ​
  • Maximum of 5 draws permitted​
  • General Contractor is required ​
  • Additional specialized Contractor (s) allowed for technical items ​
  • Can finance up to 6 months PITI if home deemed uninhabitable by HUD consultant​
  •  No funds will be disbursed to Contractor or borrower at closing​
  • As repairs/renovation work is completed and draws are requested: ​
  • 10% holdback is withheld from each draw ​
  • Draws released when acceptable Consultant inspection(s) received 

Contingency Reserves explained:

A Contingency Reserve is held in the Borrowers Renovation Escrow Account from the loan proceeds to cover health and safety costs that arise during construction (i.e., mold/termite)

FHA 203(k) LIMITED – Any funds remaining at the end of the renovation process must be applied as a principal reduction.​ 

FHA 203(k) STANDARD -Any funds remaining at the end of the renovation process may be applied as a principal reduction, or a change order can be submitted for review and approval.​

FHA203(k) Limited Renovation Home Loan – Eligible Repairs

Repair/replacement/upgrade of mechanical items such as: ​

  • Roof, gutters/downspouts ​
  • HVAC systems ​
  • Plumbing/Electrical systems ​
  • Flooring ​

Minor remodeling (i.e., kitchen/bath without structural changes) ​

Painting (exterior and interior) or lead paint stabilization ​

Weatherization (i.e., storm windows and doors) ​

Purchase and installation of appliances ​

Mold remediation ​

Minor Well or Septic repairs 

FHA203(k) Limited Renovation Home Loan – Not Eligible Repairs

Major rehabilitation work not eligible: ​

  • New construction ​
  • Relocation of load-bearing walls ​
  • Room additions ​
  • Repairs of structural damage ​

Repairs identified in appraisal as requiring a: ​

  • Consultant Work Write-Up ​
  • Plans or architectural exhibits ​

Installation of well/septic not eligible (minor repair is ok) 

FHA203(k) Standard Renovation Home Loan – Eligible Repairs

Eligible Repairs

The FHA203(k) STANDARD option is used for more complicated projects. Eligible repairs include: ​

  • Significant structural alterations and additions ​
  • Considerable landscaping and site improvements ​
  • Repair swimming pool ​
  • Remodeling of rooms, including kitchens & bathrooms ​
  • Relocation of load-bearing walls ​
  • Construction or rehab of detached garage ​
  • Converting multi-unit to a single unit or a single unit to a multi-unit ​
  • Basement finishing or waterproofing ​
  • Appliances used in remodel​
  • Well/septic work​
  • Retrofitting a home for Special Needs or Handicapped Access features ​


FHA203(k)Limited – Tips

Total rehabilitation cost (labor/materials) should not exceed the following amounts to allow for contingency reserve: 

  • 10% contingency: approx. $31,250 total rehab cost ​
  • 15% contingency: approx. $30,000 total rehab cost ​

Fees cannot be waived or altered to adjust below the maximum repairs of $35,000 

  • Fees include a borrower-financed contingency reserve ​

The borrower cannot pay for any portion of the project outside of closing ​

  • Ex: Cannot pay for materials not covered in the bid ​
  • Ex: Borrower cannot do demo work 


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Branch Manager, Loan Officer

"What we do is so far more important than lending and buying houses. We are in the business of facilitating dreams and honoring the start of a new home.” 

Daniel Priest

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Loan Officer

"I enjoy working with clients new to the homebuying process. Remembering what it was like for my family, I will take my knowledge of the mortgage process and make it easier.” 

Teona Rodriguez

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"“I wake up every morning with incredible appreciation. I love what I do.” ” 

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