Skip to content
Fact Checked by Experts

FHA 203k Loan in Broward County, Florida

The Federal Housing Administration (FHA) 203k loan program is a mortgage that allows you to buy a home and finance the purchase price of your home with one mortgage. You can use this program if you purchase a home that needs repairs, improvements, or routine maintenance. You can use this financing on single-family homes, condos, and co-ops.

You do not have to use this money for repairs. You can also use it to pay off existing liens on the property or any other debt obligations associated with your new home purchase.

What is an FHA 203K loan?

FHA 203k Loan - Improving home value through a renovation in Broward County, Florida. An FHA 203k loan is a mortgage rehabilitation loan designed to help low-income families buy homes that need repairs or renovations.

FHA 203k Loan is a government-insured loan that allows homebuyers to get financing for fixing up their homes. This includes repairs, upgrades, and even additions to the property. It's an excellent way for homeowners who want to fix their homes or sell them at a higher price.

If you have your heart set on buying or selling your current home in Broward County, Florida, this might be the right option!

If you're looking for an FHA 203k loan in Florida, look at our guide below. We hope you enjoy reading this article about the FHA 203K Loan Program and how it can work for you!

FHA 203K Standard Loan

The FHA 203K Standard Loan is one of the most popular and flexible programs to fix your home. This is a good option if you plan to make structural repairs or renovations on your property but don't want to move into a new home and pay off the mortgage on two properties at once.

It can also be used for non-safety landscaping improvements, such as putting in a new driveway, creating an outdoor living space, or adding other features that add value to your investment property.

This program allows you to borrow up to 6% of the appraised value of your home's purchase price (or up to $35000). If it costs more, use another FHA loan program like 203(b) or conventional financing.

Apply for FHA 203K standard loan

To apply for an FHA 203K loan, you must have a contractor who will oversee all of the work. The contractor must meet minimum standards for the project and should be able to provide documentation that they are licensed or registered in their state. HUD also requires that you have a housing consultant to help with the documentation.

The consultant is responsible for helping make sure that the contractor follows all regulations throughout the process of repairing or improving your home.

Uses of FHA 203K standard loan

When you purchase a home with a 203K loan, you have the option to use the money for many different things. The most common uses include:

  • Adding windows to the home; can help increase natural light and ventilation throughout the house.

  • Finishing or finishing off an attic or basement.

  • Adjusting floor plan by knocking up walls and adding space where needed.

  • Adding garage space (often required in new construction).

  • Expanding kitchen size or improving its functionality.

FHA 203K Limited Loan

A 203k loan is a type of FHA loan. You can use this program to buy a property that needs repairs or purchase and renovate an existing home.

When purchasing a property through the 203k program, the lender will lend you up to 100% of the purchase price plus repair costs (up to 130%). However, there are limits on how much you can spend on renovations—this limit is known as your "renovation budget."

In Broward County, Florida (and most other places), this amount cannot exceed $35,000 per unit; if you're buying a duplex with four units, your renovation budget would be $140k ($35k/unit x 4 units). If necessary repairs cost more than this, then they'll have to be paid out-of-pocket by the borrower after closing their loan.

The good news for buyers in Broward County is that there's no minimum requirement for repairs. If all of your financing come from seller financing instead of getting an FHA 203k loan from an approved lender, then even minimal work could be enough for some lenders' standards!

Things you can do with FHA 203K Limited Loan

The 203k loan is a great way to finance your home's renovation, especially if you want to perform major repairs such as replacing windows for energy efficiency or installing new flooring. You can also use it to repair the roof, replace sidings, upgrade electrical and plumbing systems and even repaint your house.

If you have an older septic tank that needs replacing, you can use this type of loan for that purpose. If your home is damaged by fire or flooding, this financing would also allow you to rebuild on the same piece of land.

How home improvements can improve home value

Home improvements can increase the value of your home. A remodeled kitchen or bathroom, new flooring, and a fresh coat of paint are just some ways to make your home more attractive to buyers and boost its value.

Increase in space

One of the most popular home improvements is adding to your existing home. Building an addition provides more living space for your family, but it also increases the size of your home, which makes it more valuable when you put it on the market.

An extra bedroom or two and an extra bathroom can make an enormous difference in the amount of money someone is willing to pay for your property.

Kitchen upgrades

The kitchen is one of the essential rooms in any house because it's where families spend a lot of time preparing meals and eating. If you want to add value to your property, consider upgrading the kitchen to be spacious and modern-looking with granite countertops and high-end appliances like an oven, range top, or dishwasher.

If possible, include a breakfast nook or bar area where people can eat while standing up rather than sitting at a table — it gives buyers more flexibility when designing their dream kitchens on their properties after purchasing yours!

Bathroom Remodeling

Bathroom remodeling is one of the most popular home improvement projects. A bathroom can be a relatively inexpensive way to increase the value of your home. A new bathroom can also improve your home's overall look and feel, making it more appealing to potential buyers.


Flooring is another popular home improvement project that can boost the value of your home. If you currently have carpet or wood floors, you may want to consider replacing them with hardwood or laminate flooring instead.

Both flooring types are durable and less expensive than other flooring options like tile or slate. Hardwood and laminate flooring require less maintenance than carpeting, so they're easier to keep clean and maintain over time.

FHA 203k Loan text written on notebook

Eligibilities for FHA 203K loans

To be eligible for an FHA 203k loan, you must have a 580 minimum credit score. You must also have a steady income, and your debt-to-income ratio should be less than 43%.

The following are requirements for FHA 203k loans:

  • Be sure that you meet the minimum requirements to qualify for an FHA loan.

  • You need a 2 percent down payment on the home's purchase price (some lenders will require 3% or more).

For example - If your purchase price is $200,000 and your closing costs total $10,000, then 10% is $20K plus another 10% would bring us up to 30K, so, therefore, we would need at least 20K in order not use any funds from our pocket but instead put it towards repairs instead if that makes sense? Anyways, thanks so much!

FHA 203k Loan limits in Broward County, Florida

FHA loan limits for Broward County, Florida - For one-family properties, the FHA loan limit is $460,000. For three-family properties, the FHA loan limit is $711,800. Your FHA loan amount will depend on your monthly income and credit score.

The higher your credit score and lower your debt-to-income ratio (DTI), the better your chance of getting approved for a mortgage loan with lower down payment requirements or higher amounts.

FHA 203k PMI in Broward County, Florida

You'll have to pay an upfront amount called private mortgage insurance (PMI) to get a mortgage. The reason that you have to pay this is that the Federal Housing Administration insures FHA loans.

The FHA insures your loan and charges an insurance fee to protect themselves from loss if you were to default on your mortgage. As a result, there's no way for them to make sure that you can afford the payments yourself without charging anything besides security.

Generally, if your down payment is less than 20%, you must pay both upfront PMI and monthly PMI fees. FHA 203K upfront PMI is 1.75%, and monthly PMI is 0.45% - 1.05%.

In most cases where lenders charge both upfront and monthly fees, it has the same effect on the overall cost as if they just charged one or the other (i.e., paying $0 extra).

However, some companies have found ways around this by offering programs where they allow borrowers who can pay off their closing costs after making their initial 5% down payment at the time of purchase/refinance into their homes without requiring any additional funds upfront toward these expenses at closing–so technically still meeting Fannie Mae requirements despite not charging for monthly premiums beyond what was already calculated into their rates–but remember - DO NOT EVER DO THIS!

You will pay much more overall once all interest charges are factored into things over time due mainly to how long those charges accrue interest before being fully paid off within 30 years' worth.

How to Apply for FHA 203K Loan in Broward County, Florida

Here's a breakdown of the vital steps to getting a FHA 203k loan:

Qualify as a first-time homebuyer

If you're buying a home to live in, you must be a first-time homebuyer. That means you or your spouse has not owned a home for the past three years.

If you have previously owned a home but did not live in it for at least three years, then you do not qualify as a first-time homebuyer.

Find an FHA 203(k) loan lender

Once you have determined that you are eligible for an FHA 203(k) loan and decided on which property to buy, find an approved FHA 203(k) lender in your area who specializes in these loans.

You can find lenders online or ask friends and family members if they've used one before and whether or not they would recommend it to others seeking this type of financing.

Find a contractor

You'll need to find a contractor who can do the work on your house. Your lender will help you with this, but you should also research contractors and interview them before hiring one. You'll want to find someone with experience with FHA 203(k) loans and licensed and insured.

Get quotes on the cost of repairs

Your lender will provide guidelines for acceptable repair costs, but you must get concrete quotes from contractors before signing any contracts or committing to work being done. The lender will also have inspectors come out to ensure that all repairs are proper and code compliant.

Work with your lender to complete an application and submit any required paperwork

You'll need to provide proof of income, such as a W-2 from an employer or a pay stub, along with your social security number and contact information for all household members who will be on loan.

You'll also need tax returns and bank statements for the past two years (if you're self-employed, three years). The lender may also ask for related documents if you have other debts.

Negotiate with lenders and underwriters to get approval for the loan

The FHA 203(k) program allows lenders some leeway in approving a borrower's eligibility for the loan; however, it does have minimum requirements that you must meet before approval.

For example, your credit score must be at least 500 (620 if using public funds), and you can't have any delinquent mortgage payments within the last year. Your debt-to-income ratio must not exceed 45 percent (50 percent if using public funds).

Hire the contractor, sign documents, and get started on repairs

You're ready to hire a contractor and start making needed repairs to your home. You'll need to sign a contract with them to outline the work they'll be doing, how much it will cost and how long it will take. This way, you can make sure that nothing is missed or forgotten.

If you're unsure what kind of work needs to be done, it might be a good idea to consult an inspector before choosing a contractor. You may also want to ask for references from past clients so you can get some feedback on their performance.

Return to the lender for final approval once repairs are complete

Once you've completed all of your repairs, you'll need to go back to the lender for final approval. The lender will inspect the property again, so ensure everything is up to code before arriving.

At this point, they'll review your documentation and ensure everything is in order before issuing a check for the loan amount agreed upon when you applied for the loan in step one above.

What can you use an FHA 203K loan for?

An FHA 203K loan can help you renovate or improve a home. If you want to purchase a fixer-upper, the FHA 203K loan might be for you. There are several types of possible projects:

  • To buy a home that needs work.

  • To buy a home that needs a lot of work and is in an undesirable area (a bad neighborhood).

  • To buy a home in an undesirable area abandoned by the previous owners, who left it with no appliances or fixtures.

Pros of FHA 203k Loans

  • Low down payment and flexible credit qualifications - The minimum down payment is 3.5%, with some lenders offering down payment assistance programs that allow you to put down as little as 3%. The minimum credit score is 500, but some lenders will lower it if your income is high enough.

  • You can finance repairs into the loan - This allows you to fix your home without saving up for repairs. It also means that you can pay for the repairs over time with a low-interest rate instead of paying out of pocket with a high rate.

  • The property is more valuable when you're done with it - Because FHA 203(k) homes are generally in much better condition than before the renovation work was completed, they tend to sell for more money than similar homes without such improvements.

  • Flexible credit qualifications - The FHA does not place income limits on borrowers who want to buy an FHA-insured home. This means that even if you have bad credit or no credit history, you still may qualify for an FHA-insured mortgage loan if your income is sufficient to repay the debt.

Cons of FHA 203k Loans

  • There is a limit to what you can borrow - Because this type of mortgage is designed specifically for home repair projects, there's a maximum amount allowed per project: $35,000.

  • The process of buying and fixing up a home can be long and drawn-out - If you're looking for an investment property, you may have to find someone else who wants to partner with you on a property purchase or look for another type of financing.

  • FHA 203 K Limited Loans are only available for owner-occupied homes - This restriction may change in the future, but it's not available for investors who want to use the money from this loan to purchase rental properties.

Top 5 Desserts in Broward County, Florida

  • Chocolate chip macadamia nut cookie at Sushi Samba - This is the perfect, gooey, and chewy cookie to satisfy your sweet tooth.

  • Banana Foster French Toast at the Cheesecake Factory - If you're looking for a breakfast item that's not just sweet, this French toast will blow your mind. It's topped with caramelized bananas and rum caramel sauce.

  • Chocolate cake at the Capital Grille - The chocolate cake here is rich, dense, and decadent. It's worth trying if you're a chocoholic!

  • White chocolate bread pudding at Maggiano's - This dish is made of cubes of bread soaked in white chocolate sauce and topped with whipped cream and fresh berries. What could be better than that?

  • Salted caramel cheesecake at Bijan's Bakery & Café - If you have a sweet tooth and need something to curb those cravings, this salted caramel cheesecake will do just that!


If you're considering buying a home, the FHA 203k loan may be just what you're looking for. It can help you buy a home that needs repairs or pay for repairs to your existing home.

If you have questions about this loan or any other questions about financing your next home in Broward County, Florida, contact us today!

With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

Find The Right Mortgage

For more than 20 years, Phil have been helping customers achieve their home purchase and refinance goals by providing them with invaluable resources and support.

Schedule a FREE Consultation
Phil Ganz

Subscribe to Get Your First Time Homebuyer Checklist

Sign up for the weekly newsletter to stay up to date on the latest real estate market trends, loan news, and so much more!