On a FHA 203(k) Rehab Loan (or Fannie Mae Homestyle renovation loan), are there different qualifying standards than a typical FHA or conventional loan? No.

Credit qualifying is the same for any FHA or conventional loan with our preferred specialty lender.

The only big qualifying difference is the loan amount is that the buyer must qualify for a higher loan amount with a FHA 203(k) or conventional renovation loan Рbecause of the additional repair/improvement monies needed to make the repairs.

When the buyers are pre-approved, we use a higher qualifying amount assuming there will be additional monies needed for updating and repairs.

    • On a FHA 203(k) or Fannie Mae Homestyle renovation¬†loans the buyers choose their own/preferred contractor.
    • The buyers¬†are the ones who choose the contractor.
    • Unless it’s a single repair like a pool or roof, the buyer will select a General Contractor to estimate all items to be included.
    • The FlexSure Realty Team will validate each¬†contractor to ensure they¬†have the proper licenses, insurance and a good work reputation.

While there is no such thing as a FHA 203(k) approved contractor, there is a list of validated contractors who have worked with us in the past.


A Recent Success Story –¬†Simple Updates for an Beach Bargain Buy

A 1,737-square foot, 19-year-old foreclosed home went under contract for $102,000.00

A Florida licensed contractor was selected and developed a scope of work (estimate) totaling $41,702.00 to include new bathrooms, painting, plumbing /electrical updates, a new roof, new HVAC and other miscellaneous repairs.

The home appraised at $170,000!

The loan closed in 38 days.

NO work was required until after closing.

  • While every renovation loan can present a different scenario for inspections, process etc., we receive many questions for the basic premise of the product.


Here is a short, generic summary of a renovation loan on an “As-Is” property: Home went under contract “As-Is”

Buyer had home inspection, wood destroying organisms (WDO) inspection, etc.

Items are identified that MUST be addressed for the home to meet minimum property standards AND the buyer decides what improvements he/she WANTS to make on the home.

The general contractor provided a DETAILED Scope of Work, on his letterhead, with line items breaking out labor and materials for each item.

The appraisal was ordered.

The Scope of Work was uploaded for the appraiser who includes it in the appraisal and assigns value based on the work being done (subject-to). ALL WORK IS DONE AFTER CLOSING.

The loan closed. The renovation monies are put in escrow with my post-close specialist.

When the work is complete, an inspection is ordered to ensure the work was done in workmanlike/professional manner.

In addition, a final title update is done to ensure there are no liens on the property before the contractor is paid the balance of funds owed for services rendered.

Learn more about this loan process. Call Rebecca at 352-870-5272 today to talk about your options.