FHA Home Improvement Loans

FHA home improvement loans might be the solution you are looking for when you need to make repairs or improvements to your home but don't have the cash to pay for the improvements. Under the FHA 203(k) program, homeowners can secure funds for home improvement provided the property has adequate value to secure the loan.


In order to qualify for an FHA home improvement loan, the property must be a residential, one-to-four-unit dwelling that is older than one year. Condominiums can also qualify, but only for interior improvements.

Step 1 - FHA Home Improvement Loan Purpose

FHA home improvement loans must be used for specific purposes. Unlike equity loans, they cannot be used to pay off credit debt or fund other property purchases; the funds may only be used for the improvement of the property, including roof repair and replacement, flooring, weatherization, well and septic system repair and other improvement.

Step 2 - FHA Home Improvement Loan Sources

While the loan is guaranteed by the federal government, your funding source can be any FHA lender who offers FHA home improvement loans. Ask your lender if they participate in the FHA home improvement loan program.

Step 3 - Streamlined FHA Home Improvement Loans

The FHA offers a streamlined FHA home improvement loan product for improvements of $35,000 or less, allowing homeowners quick and easy access to home improvement funds at some of the lowest interest rates available.