Can an FHA 203(k) loan pay for my remodel?

What HUD lets the loan pay for

According to HUD, 203(k) money can go to kitchen and bathroom remodeling, structural repairs, room additions and second stories (Standard 203(k) only), roofing, plumbing, electrical, HVAC, flooring, painting, windows and doors, accessibility modifications, energy efficiency upgrades, basement finishing and waterproofing, and lead based paint remediation.

That list is how HUD describes the program as of October 2026. Your lender and HUD decide whether you and the project qualify.

Limited or Standard

The Limited 203(k) is for smaller projects with no structural work, typically under $35,000. New cabinets and counters, a bathroom rebuilt in the same footprint, or new floors and paint through the house can fit here when nothing structural changes and the total stays inside the limit.

The Standard 203(k) is for structural work and additions, up to the FHA loan limit for your county, and it requires a HUD consultant. Moving a load bearing wall, adding a room or putting a second story on the house means Standard.

How the contractor gets paid

The renovation money does not go to you or to the contractor up front. It sits in escrow and is paid out in draws as each stage of the work is completed and inspected. The work has to be finished within six months of closing.

If the house cannot be lived in during construction, HUD allows up to six months of mortgage payments to be rolled into the loan.

What we can and cannot do

We are not an FHA approved lender, a HUD consultant or a contractor enrolled with HUD, and we do not apply for the loan for you. The application goes through the lender you pick.

Where we help is the scope. The draws are tied to finished, inspected stages, so the loan works best with a scope that spells out each stage. After the walkthrough we send a written scope and one written price, usually within 24 to 48 hours, with each item listed and every allowance given a figure. If the lender accepts us as your contractor, we do the work and bill against the draw schedule.

The six month clock matters more than people expect. Cabinets and windows can take weeks to arrive, so on a 203(k) job we put the long lead items on order as soon as the loan closes.

Services this program can pay for

Of the work on HUD's list, these are the jobs we do: kitchen remodeling, bathroom remodeling, home additions, basement finishing, flooring, interior painting and exterior painting, windows, doors, and accessibility modifications.

Where this comes from

FHA 203(k) Rehabilitation Loan, run by the US Department of Housing and Urban Development through FHA approved lenders. Information current as of October 2026.