Eligible repairs under an FHA 203k loan?

Posted on Oct 1, 2012 in FHA Information

Question by thebrock1584: Eligible repairs under an FHA 203k loan?
Can someone direct me to a list of eligible repairs that an FHA 203k Mortgage loan covers. We want to but a fixer upper but need to know what repairs are covered. Thank you We live and want to buy in Oswego county NY if that makes a difference.

Best answer:

Answer by Terry Socia
All the repairs necessary to get it into livable condition if the repairs don’t drive the price up to over 96.5% of it’s value and sometimes it is 80% of it’s value. Check with the lender on this percentage

Know better? Leave your own answer in the comments!

5avg.rating 23 votes.


  1. Usually a 203K loan covers all repairs except; moving a wall, major structural damage, putting in a pool (it will however pay to get an existing pool in working condition). I closed one in June and the buyer’s had new plumbing run, electrical issues fixed, a new roof (on the home and detached garage), new flooring, kitchen counters and appliances, rehabbed both bathrooms (down to the studs), took out 2 trees that were too close to the house (covers some landscaping), repaired the rear fence line (a tree had fallen on it), repaired some drywall, replaced some drywall.

    Eligible Improvements

    Luxury items and improvements are not eligible as a cost rehabilitation. However, the homeowner can use the 203(k) program to finance such items as painting, room additions, decks and other items even if the home does not need any other improvements. All health, safety and energy conservation items must be addressed prior to completing general home improvements.


  2. Great article!

  3. What if I need to know more – how can I find you?