What repairs CAN and CANNOT be financed with a 203k loan. The surprising exclusions.

What repairs CAN and CANNOT be financed with a 203k loan. The surprising exclusions.

Knowing exactly what is allowed helps you plan accurately and avoid frustration later.

Here is what you CAN finance:

• Structural repairs. Foundation work, framing, roof replacement, and additions.
• Major systems. Electrical, plumbing, HVAC, and sewer lines.
• Full kitchen and bathroom remodels. Including high-end appliances and coffee bars.
• Cosmetic updates. Paint, flooring, lighting, and windows.
• Accessibility upgrades. Ramps, grab bars, and widened doorways.
• Energy efficiency improvements. Insulation, windows, and solar panels.
• Retaining walls, basic hardscaping, and outdoor kitchens.
• Built-in home theatres and outdoor fireplaces.
• Attached garages and carports.
• Accessory Dwelling Units (ADUs). Such as a backyard cottage, mother-in-law suite, or above-garage apartment — as long as it meets FHA guidelines.
• A few months of mortgage payments rolled into the loan to help cover living expenses or temporary housing during construction.

Here is what you usually CANNOT finance:

• Furniture, TVs, or any movable personal property.
• Lawn equipment or riding mowers.
• Standalone greenhouses.
• Digging of a pond or large water features.
• Pure recreational items that do not add to the permanent value of the home.
• Any work already completed before closing.

Pro tip. The 203k program is more flexible than most people realize. You can include nice upgrades like built-in home theatres, outdoor fireplaces, and even ADUs. Work closely with your HUD consultant when creating the work write-up. They know exactly what FHA will approve and can help you maximize what goes into the loan.

Bottom line. A 203k lets you finance almost anything that is permanently attached to the home and adds to its value or livability. But it is not for furniture, lawn equipment, TVs, greenhouses, or ponds.

Get clear guidance early from your consultant and lender so you can build an accurate budget and avoid any surprises.