Both combine purchase and rehab into one FHA mortgage — Limited fits smaller, non-structural improvements with a lighter process; Standard supports larger or structural renovations with a HUD consultant and fuller draw schedule.
Choose the path that matches your scope — not the one that sounds simpler if your work is structural.
| Feature | Limited 203(k) | Standard 203(k) |
|---|---|---|
| Purpose | Minor, non-structural improvements | Larger / structural rehabilitation |
| Eligible transactions | Purchase · Rate/term refinance | Purchase · Refinance (per FHA rules) |
| Occupancy | Primary residence only | Primary residence only |
| Credit | Per AUS (delegated & non-delegated) | Per FHA / AUS guidelines |
| Max LTV (purchase) | 96.5% of after-repair value | 96.5% of after-repair value |
| Max LTV (rate/term refi) | 97.75% of after-repair value | 97.75% of after-repair value |
| Loan amount | Min $100,000 · Max per FHA county limits · High-balance allowed | Min $100,000 · Max per FHA county limits · High-balance allowed |
| Property types | Attached/detached SFR, 2–4 units, multiwide manufactured, mixed-use where eligible | Attached/detached SFR, 2–4 units, multiwide manufactured, mixed-use where eligible |
| Repair limits | No minimum · Max $75,000 total budget (repairs + fees + contingency) | $5,000 minimum rehab · No maximum (subject to FHA loan limits & appraisal) |
| Contingency reserve | Min 10% (15% if utilities off) · Unused applied to principal | Min 10% (15% if utilities off) · Unused applied to principal |
| Mortgage insurance | Upfront FHA MIP + monthly FHA MIP | Upfront FHA MIP + monthly FHA MIP |
| Eligible repairs | Cosmetic/light: kitchens, baths, flooring, paint, HVAC, windows, siding, appliances, accessibility, mold/lead, existing-pool repairs | Structural, additions, major rehab |
| Not allowed | Structural, foundation, tear-down/rebuild, DIY, new pools | DIY (self-help) in escrow |
| Contractors | Up to 3 contractors · No consultant | One general contractor · HUD 203(k) consultant required |
| Draw schedule | Max 2 draws · 10% holdback each · Up to 50% advance if contractor cannot wait | Max 5 draws (4 intermediate + 1 final) · 10% holdback · Final 1004D inspection |
| Financed PITI | Not available | Up to 12 months if home is uninhabitable during construction |
| Completion timeline | 9 months after closing | 12 months after closing |
| Loan products | 30-year fixed · 3/1 ARM · 5/1 ARM | 30-year fixed · 3/1 ARM · 5/1 ARM |
Picking the wrong path wastes weeks — we size the scope against HUD rules before you go under contract.
Major rehab guidelines, calculator, and pre-approval path.
Cosmetic rehab up to $75,000 — no consultant required.
How the FHA renovation mortgage works overall.
Credit, down payment, and occupancy basics.
What work can roll into Limited or Standard.
The total rehabilitation budget — repairs plus fees, contingency, and financed costs — cannot exceed $75,000 on Limited 203(k) Streamline. There is no minimum repair amount. If your scope exceeds $75,000 or involves structural work, Standard 203(k) is the path.
Standard 203(k) requires a minimum $5,000 rehabilitation cost with no maximum repair cap beyond FHA loan limits and after-improved appraisal support. Limited has no minimum but caps total rehab at $75,000.
Standard 203(k) requires a HUD-approved 203(k) consultant who prepares the work write-up, reviews bids, and helps manage draws. Limited 203(k) does not require an FHA 203(k) consultant.
No. Limited is designed for non-structural repairs and improvements only. Structural work, foundation repairs, tear-down/rebuild, room additions, and moving load-bearing walls require Standard 203(k).
Purchase: 96.5% LTV on after-repair value. Rate/term refinance: 97.75% LTV on after-repair value. Minimum loan amount is $100,000; maximum follows FHA county limits (high-balance FHA allowed). Credit is per AUS for delegated and non-delegated files.
Limited 203(k): renovation must be completed within 9 months after closing. Standard 203(k): construction must be completed within 12 months after closing. Extensions may be available case-by-case with lender approval.
Send your renovation wish list and contractor bids — Ryan & Steve will map the right FHA 203(k) path before you offer.
All loans are subject to credit and property approval. FHA program guidelines, rehab caps, MIP rules, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by HUD, FHA, or any government agency. Information is for educational purposes only and is not a commitment to lend.