• Structural repairs (foundation, framing, roof).
• Kitchen and bathroom remodels.
• Additions and ADUs.
• Accessibility upgrades (ramps, widened doorways, accessible bathrooms).
• Energy-efficiency improvements (windows, HVAC, insulation, solar).
• Landscaping (program-dependent; typically only as part of a larger scope).
• Pools are generally NOT eligible under 203k; HomeStyle and CHOICERenovation allow them in many scenarios. Confirm before scoping.

• Limited 203k: caps total repair budget at $75,000 (raised from the long-standing $35,000 cap in recent FHA changes; verify the current cap with us before structuring). No structural work allowed. Cosmetic and minor repair scope only. No HUD Consultant required.
• Standard 203k: handles repair budgets above the Limited cap. Structural work allowed (additions, foundation, major reconfiguration). Requires a HUD-approved 203k Consultant on the file to oversee scope and draw inspections.
• Most rehab budgets above $75,000 or involving any structural change have to go Standard. Most cosmetic refresh projects can fit inside Limited.
• We work with lenders going to program minimums where allowed.

A renovation loan is sized to the After Repair Value (ARV), not the current as-is value. The appraiser produces both:

• As-is value based on the property in its current condition.
• Subject-to-completion value (ARV) based on the detailed scope of work and contractor bid.

The lender applies the program LTV ceiling to the ARV. This is why the contractor bid and the scope-of-work document matter so much: the appraiser values the finished product based on what is written in those documents.

• Licensed in the state where the property sits.
• Bonded and insured.
• Approved by the lender after review of credentials, references, and prior work. Some lenders maintain a preferred-contractor list with renovation- loan experience.
• Self-help (doing the work yourself) is generally not allowed on Standard 203k. HomeStyle and CHOICERenovation allow limited self-help in narrow scenarios.
• Contractor receives funds in scheduled draws after lender inspection of completed work, not as a lump sum at closing.

• Initial closing: typically 60-90 days, longer than a standard purchase because of contractor bid review, scope-of-work documentation, and HUD Consultant involvement on Standard 203k.
• Build period: typically up to 6 months on Standard 203k, shorter on Limited. Total project timeline (close plus build) often runs 9-12 months.
• Plan the full timeline up front so you are not surprised by the difference between "loan closes" and "renovations are done."

• Buying a fixer-upper. The property does not meet move-in standard, or it is being purchased below market and rehabbed to market.
• Refinancing for a major remodel. You own the home, want to do a substantial renovation, and prefer one loan sized to ARV instead of stacking a HELOC.
• Adding an ADU. Building an attached or detached secondary unit. See our ADU financing guide.
• First-time buyer customization. A buyer wants a specific kitchen, primary suite, or layout that the listing does not have. See our first-time home buyer hub.

• HELOC after purchase. Close on a regular purchase, then take out a Home Equity Line of Credit to fund the rehab. Faster initial close, but you finance the rehab against the original property value, not ARV.
• Cash-out refinance after rehab. Pay for the rehab with cash or short-term credit, then refinance once the property appraises higher. Requires liquidity upfront.
• Construction-to-perm loan. Short-term construction loan that converts to a permanent mortgage at completion. Standard for ground-up new construction; less common for rehab of an existing structure.
• Private rehab funds. Investor-focused hard money or private lender for short-term rehab capital. Higher rates, fast close. More common in the BRRRR strategy than on an owner-occupied remodel.