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FHA 203k Loan in Levy County, Florida

The Federal Housing Administration (FHA) 203k loan in Levy County, Florida, allows homebuyers to finance the purchase of a property and the costs of renovating simultaneously. This means you can make extensive upgrades to your new home without worrying about getting a second mortgage on top of your regular mortgage loan. As such, it's perfect if you want to turn an old fixer-upper into your new dream home.

This guide covers everything you need to know about the FHA 203k loan in Levy County, Florida, including the various types, eligibility requirements, the application process, and how to utilize the loan to transform your outdated home into your dream home. We'll also outline the five best desserts in Levy County, Florida, and the famous spots to get them. Read on to discover more.

The Basics of FHA 203K Loans

An FHA 203K loan is a renovation mortgage that allows you to make repairs and improvements to your home. It's an easy way for homeowners with bad credit or little money for the down payment to buy and rehabilitate their homes. You can borrow up to $35,000 but not less than $5,000, with a down payment of 3.5% to finance your renovation project. For example, if you want to fix your kitchen by adding new cabinets and countertops, you could get approved for an FHA 203k loan.

You can take advantage of FHA 203K loans if you meet the requirements and want to use the subject property as a primary residence after renovations. Interest rates on these loans will vary depending on your credit score and other factors. Be sure to talk to a lender about how much you might qualify for and understand loan terms before purchasing your new home.

Types of FHA 203K Loans

The FHA 203K loan has three types, each with a specific set of requirements and benefits, so it's essential to understand what each option entails before applying.

The following guide explains the various types of FHA 203K loans and how they can help you get started with your project.

FHA Standard 203K Loan

An FHA Standard 203K Loan is the most common type of 203k loan. It allows you to buy a home that needs significant repairs and repair it to improve its liveability, functionality, and value. However, remember that there are different requirements for which property type you can qualify for a standard 203K loan.

This loan is used when a home requires structural repairs, involves non-safety related landscaping, or when renovation costs exceed $35,000, and the minimum amount for repairs is $5,000. Renovation budgets are not capped, but FHA loan lending limits will apply.

You will need both a contractor and a HUD consultant. HUD Consultants ensure compliance with all minimum property standards and that your contractor has completed the work according to the contract.

The following home renovations and repairs are eligible for a standard 203K loan in Levy County, Florida:

  • Extending the size of the kitchen by extending into the dining room

  • Increasing the size of the windows to enhance the interior lighting

  • Building a detached garage if your home doesn't have one

  • Creating an additional to increase square footage

  • Building a retaining wall to restrain flooding

  • Toppling walls to extend the floor plan

  • Fixing foundational issues

  • Finishing a basement or attic

  • Rejuvenating the pool

FHA Limited 203K Loans

The FHA Limited 203K loan is for those who wish to make minor but inexpensive repairs or renovations to a home. Understandably, lenders often require some documentation about your repair plan to make an approval decision on a Limited 203k. This may include estimates from contractors as well as receipts from materials purchased.

An FHA 203k Limited loan is available for homes requiring non-structural or cosmetic improvements. There's no minimum amount for repairs, but the total renovation budget can't exceed $35,000.

You'll need to complete a written work plan to demonstrate your understanding of the contractor's bid. Limited loans do not require HUD consultants. Mortgage payments cannot be financed with this loan.

Below is a list of home improvements eligible for a Limited 203K loan in Levy County, Florida:

  • Minor kitchen renovation, which doesn't involve structural restorations

  • Improving property accessibility for individuals with a disability

  • Replacing windows and doors to improve home energy efficiency

  • Fixing or replacing the roof, gutters, and downspouts

  • Replacing or fixing the siding

  • Replacing the tub and showers

  • Interior and exterior painting

  • Repairing the septic

The HomeStyle Renovation Loan

A HomeStyle Renovation Loan is a conventional program that can provide you with the funds you need to cover the cost of repairs to improve your home's appearance.

With a HomeStyle renovation loan, you can perform any repair permanently attached to the property, including structural and non-structural repairs.

Landscaping and site amenities are also permitted. The following are the renovation projects eligible for this loan in Levy County, Florida:

  • Remake the fascia of your home to enhance curb appeal

  • Building an attic and installing dormer windows

  • Remedying the lead-based paint

  • Building an on-suite bath

  • Creating an open-plan floor

  • Putting on a mint carpet

  • Updating all fixtures

  • Restoring a well

  • Building a pool

Eligibility Requirements for the FHA 203K Loan Program

If you're in the market for an FHA 203K Loan, you'll want to ensure you meet the eligibility requirements to qualify for this valuable program. The guide below describes FHA 203K loan program eligibility requirements in detail.

Minimum Credit Score

You must have a credit score of 620 or higher. FHA doesn't use specific scoring models, but some factors include your payment history, the amount owed, and length of credit history.

You'll also need at least two years of steady income, and you cannot be delinquent on any accounts. Suppose you're unsure about your credit history.

In that case, there are many ways to find out, including requesting a credit report from one of the three credit reporting agencies, TransUnion, Experian, and Equifax.

Debt-to-income Ratio (DTI)

Another critical criterion you must meet to qualify for a 203K loan is a debt-to-income ratio (DTI) of 43% or less. This figure is determined by dividing your gross monthly income by your total housing costs, including principal and interest payments on all housing expenses, property taxes, insurance, and any homeowner's association dues.

Any other monthly debt obligations outside of your mortgage payment, such as car loans or credit card debt, will also be included in this calculation. You can improve your DTI in various ways, including:

  • Cut back on spending to let more money go toward your housing expenses.

  • Negotiate with creditors to get lower rates or get forgives for federal loans.

  • Move out of an expensive home into one with a lower cost-per-square-foot rate.

  • Find an extra source of income to increase your monthly income.

Additional Product Information

In addition to meeting the conditions above, there are a few more that you'll need to consider. To qualify for an FHA loan and receive the benefits of the 203K program, you must meet the following additional requirements:

  • The property must be your primary residence.

  • You can't use the 203K loan to repay your existing mortgage.

  • You can't use the 203K loan to purchase or repair rental properties.

  • A stable financial standing is required without a history of bankruptcy or foreclosure.

  • Qualifying properties must provide necessary facilities such as bedrooms, kitchens, and bathrooms with running water.

  • Accessory dwelling units (ADUs) are only allowed on properties with one unit (single-family dwellings), not those with two to four units.

Gold coins calculator and tools for home renovation

How to Apply for an FHA 203K Loan

This type of financing can be confusing, especially if you're a first-time 203K borrower, so it's essential to understand the application process from start to finish.

Whether you're interested in repairing or modernizing your home, the following step-by-step guide will walk you through the FHA 203K loan application to be well-informed about what you're getting into.

Find a Loan Officer

Contact a loan officer specializing in FHA 203k loans to begin the application process. Ask if they specialize in this type of financing and what their qualifications are.

The loan officer will be your primary point of contact throughout the process and will be responsible for guiding you through the complicated application steps.

Choose someone you feel comfortable working with and with experience with home renovation projects similar to yours.

Get Pre-approved

The next step in applying for an FHA 203k loan is to pre-qualify or get pre-approved. This process will take some time and involves gathering information about your assets, debts, income, and credit history. You may also need to submit other documents, such as a copy of your building permit or contractor's license.

Pre-approval will clarify how much you can borrow and what types of properties are eligible. The process usually takes less than a few weeks. Plus, the steps involved with securing financing are more straightforward when you have the letter stating your pre-approval.

Home Inspections and Appraisal

Home inspections and appraisals are two of the most critical steps in the application process. These give you a better understanding of what needs fixing, what doesn't need fixing, and how much it will cost.

A HUD-approved Consultant will examine your home and prepare a professional appraisal which is then submitted with your mortgage application. The lender will use the report to determine if your property is eligible for the program and how much you'll receive in financing.

Provide Specs and Plans

You'll be required to provide the project specs and plans, especially if you intend to change the floor plan. These can be assessed by a professional with this field of expertise, such as a contractor, engineer, architect, or other construction professionals.

The report should include a cost analysis of every aspect of your renovation project, including labor and materials. The lender will review these documents before issuing an approval letter or denial.


A final appraisal review is completed before the file is passed to the lender's underwriter. If everything checks out, the file is sent to the lender's decision-makers for review. You're almost done when you receive a decision letter.


At this stage, the loan will close, and the contractor can begin the work. During the repair or renovation work, the lender's appraiser will inspect the property to ensure the work is up to HUD minimum property standards.

How to Create Your Dream Home with an FHA 203K Loan in Levy County, Florida

If you plan on staying put and getting that renovation done, it may be worth considering an FHA 203K loan. Read on for tips on transforming your existing home with an FHA 203K loan without moving out.

  • Add square footage to your small space to expand with your family.

  • Build an extra bathroom to avoid sharing one with your family.

  • Make refreshing touches to create a modern feel.

  • Remove debris, replace fixtures, and paint.

  • Construct a pool to form a home oasis.

5 Desserts in Levy County, Florida and Where to Find Them

Levy County, Florida, has everything you could ever want regarding dessert options! Whether you're craving ice cream, cake, pie, or even just some brownies and cookies, there are plenty of places to satisfy your sweet tooth.

Consider the following five delectable desserts—all found at local restaurants or retail shops within Levy County. Whether you live in Levy County or are planning to visit, these desserts will bring you back for more.

Sticky Toffee Pudding

One of the most popular desserts that you'll find in Levy County is Sticky Toffee Pudding. Known for its sweet toffee sauce topping and chewy sponge cake bottom, this treat is a guaranteed crowd pleaser.

Grab your Sticky Toffee Pudding in one of the following spots in Levy County, Florida:

  • Baskin-Robbins
  • Darby's Eatery & Desserts
  • Cedar Key Island Bakery
  • Carey's Cakes of Williston

Key Lime Pie

Though there are many amazing desserts to enjoy around the greater Levy County area, Key Lime Pie is one of the most popular. A delicate balance of tart and sweet with a creamy texture is made perfect with a dollop of whipped cream.

You can even find the traditional version that includes freshly grated key limes in Levy County. Stop by one of the following spots to get your Key Lime Pie:

  • Island Room Restaurant and Sand Bar
  • 1842 Daily Grind & Mercantile
  • Duncan's on the Gulf
  • Treasure Camp
  • Steamers

Chocolate Mousse Cakes

The Chocolate Mousse Cake is a decadent heavenly dessert for family or friends in Levy County. The cake layers give this dessert a light, fluffy feel, and the semi-sweet chocolate sauce at the bottom gives it that extra sweetness, which is already moist and tasty.

Grab your Chocolate Mousse Cake in one of the following spots:

  • Dairy Queen Grill & Chill
  • The Gathering Table
  • Shari's Sweet Shop
  • Winn-Dixie

Strawberry Cheesecake Salad

This sweet dessert is a perfect blend of fruity and cheesy flavors that make you want to go back for more. This delicious dessert is both a salad and a sweet treat that's hard to resist.

You can enjoy it anytime you want to give your tastebuds something unique. Try out this dessert in one of the below spots in Levy County:

  • Mama Sally's Restaurant
  • Popeyes Louisiana Kitchen
  • Garden Patch Cafe
  • Hitchcock's Market
  • Burger House
  • ABC Pizza

Coca-Cola Cake

The Coca-Cola Cake is a three-layer cake with whipped cream and coca-cola frosting. The homemade vanilla cake has a light texture and moist center. Most importantly, it's topped with rich chocolate ganache and even more of the coca-cola frosting. It can be served with a fresh fruit topping for a tasty dessert.

The most common type of fruit to put on top is strawberry or raspberry. Generally, this Coca-Cola Cake is an amalgamation of decadent flavors that will make your taste buds sing! Grab one of these in the following spots in Levy County:

  • Winn-Dixie
  • Walmart Supercenter
  • Havana Cuban Cafe
  • Inglis Food Mart
  • Subway

Bottom Line

If you're a homeowner in Levy County, Florida, and your home needs repair or renovation, you may be eligible to take out an FHA 203k loan to finance the changes that need to be made.

The FHA 203k loan program is designed to help you purchase and rehabilitate properties, and you can use the loan to buy either an existing or a new property.

Get in touch with a local HUD-approved consultant or a loan officer in Levy County, Florida, to help determine if the FHA 203k loan is the right choice for your situation.

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.

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