Buy a Florida fixer-upper and finance the renovations in one loan. Here's how FHA 203(k) loans work, what they cover, and the difference between Limited and Standard.
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An FHA 203(k) loan lets you finance the purchase of a home and the cost of renovating it in a single loan with one closing — still with the low FHA down payment. It is ideal for Florida fixer-uppers, older homes, and houses that need work to pass an FHA appraisal. Instead of buying, then scrambling for a separate renovation loan, you wrap it all into one mortgage based on the home’s value after the improvements.
There are two versions of the 203(k), and choosing the right one comes down to the size and nature of the work:
| Limited 203(k) | Standard 203(k) | |
|---|---|---|
| Max repair cost | Up to $75,000 | No set cap (within FHA loan limit) |
| Structural work | Not allowed | Allowed (additions, foundation) |
| HUD consultant | Not required | Required |
| Repair timeline | Up to 9 months | Up to 12 months |
| Typical use | Kitchens, baths, roof, systems, cosmetics | Major rehabs, room additions, code work |
The Limited 203(k) cap rose to $75,000 for case numbers assigned on or after November 4, 2024 — a big jump from the old $35,000, which now covers a lot more of a real Florida renovation.
Luxury items that don’t add permanent value — think outdoor pools (as a new luxury add), or anything you could take with you. The work must be done by a licensed general contractor; DIY projects are not eligible.
Your loan is based on the lesser of (a) the purchase price plus renovation costs, or (b) 110% of the home’s appraised value after the improvements — and the total must stay within the FHA loan limit for your county (the 2026 Florida floor is $541,287, higher in places like Monroe County and the high-cost metros).
A simplified Florida example — buying a $280,000 home that needs $55,000 in work:
Illustration only, using a sample rate for demonstration. Rates, taxes, insurance, and mortgage insurance change and vary by loan, county, and borrower — your actual numbers will differ. Not a commitment to lend.
Note that 203(k) rates typically run about 0.75–1.0% higher than a standard FHA loan, and Standard 203(k) projects include a contingency reserve and a HUD consultant fee. We’ll lay out the full picture before you commit.
Identify a property that needs work. We get you pre-approved for a 203(k) so you can make a confident offer.
Get contractor bids. A Standard 203(k) brings in a HUD consultant to document the scope and oversee the project.
The appraiser estimates the home’s value after the planned improvements, which sets your loan amount.
You close on the combined loan; renovation funds are released to your contractor in draws as the work is completed and inspected.
Get a free review of FHA 203(k) renovation options for your Florida project.
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