🏗️ FHA 203(k) Standard
For the house that needs everything
The 203(k) Standard is the heavyweight of renovation lending. Foundation repairs, additions, moving walls, full gut renovations — if the house needs real construction, this is the FHA program built for it. A HUD-approved consultant oversees the project from feasibility through final draw, which sounds like bureaucracy but is actually your best friend on a big job.
Is this you?
FHA 203(k) Standard tends to be a great fit for…
- Structural projects: foundations, additions, load-bearing changes
- Renovation budgets over $75,000 (minimum $5,000 in eligible repairs)
- Buyers purchasing homes that can't pass appraisal as-is
- Ambitious rehabbers who want professional project oversight baked in
Questions people actually ask
FHA 203(k) Standard: straight answers
What does the HUD consultant actually do?
They inspect the property up front, prepare the work write-up and cost estimates, review contractor bids, and sign off on each draw as work completes. Their fee (typically a few hundred to a couple thousand dollars, scaled to project size) can be financed into the loan.
Can I add square footage or an addition with a 203(k) Standard?
Yes. Additions, second stories, garage conversions, and structural reconfiguration are all eligible — that's exactly the work that separates Standard from Limited. Luxury items like pools remain ineligible under FHA rules.
How is my loan amount calculated?
Broadly: the lesser of the purchase price plus renovation costs, or 110% of the after-improved appraised value, up to your county's FHA loan limit ($552,000 in the Twin Cities metro for 2026). The appraisal is done "subject to" the completed renovation.
Can I live in the house during construction?
It depends on the scope. If the home will be uninhabitable during rehab, the 203(k) Standard can finance up to 6 months of mortgage payments while you live elsewhere — a feature most buyers don't know exists.
Keep exploring
FHA 203(k) Limited
The "make it yours" loan — up to $75,000 of cosmetic and non-structural work rolled into an FHA mortgage with just 3.5% down.
Learn more →HomeStyle Renovation
Fannie Mae's conventional renovation loan — flexible projects (yes, even pools), second homes and investment properties welcome.
Learn more →CHOICERenovation
Freddie Mac's renovation loan — HomeStyle's twin, plus a streamlined eXPress version for smaller projects.
Learn more →Not sure if FHA 203(k) Standard is right for you?
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