203K Rehabilitation Mortgage

At a Glance
Loan for home purchase and renovation
Who's Eligible?
Homebuyers and homeowners who apply and make home renovations
To Get Started:
Submit an application through an FHA-approved lender

The 203K Rehabilitation Mortgage enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. The value of the property is determined by either (1) the value of the property before rehabilitation plus the cost of rehabilitation, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less.


This program allows you to borrow money to buy/refinance and renovate your home


  • You must live in this home as your primary residence
  • You must use an FHA-approved lender
  • Your mortgage amount cannot exceed the current FHA mortgage limit of $632,500 for a single-family home
  • No household income restriction
  • Not limited to first-time homebuyers
  • The cost of the rehabilitation must be at least $5,000
  • Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place
  • The home may be converted to have up to 4 zoned residential units
  • You can finance the rehabilitation of the residential portion of a property that also has non-residential uses
  • The types of improvements that borrowers may make include:
    • structural alterations and reconstruction
    • modernization and improvements to the home’s function
    • elimination of health and safety hazards
    • changes that improve appearance and eliminate obsolescence
    • reconditioning or replacing plumbing; installing a well and/or septic system
    • adding or replacing roofing, gutters, and downspouts
    • adding or replacing floors and/or floor treatments
    • major landscape work and site improvements
    • enhancing accessibility for a disabled person
    • making energy conservation improvements
  • Properties must meet certain basic energy efficiency and structural standards


Housing and Urban Development (HUD)
(800) 225-5342

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Have more questions about this or other Baltimore City homeownership incentives? We're here to help! Send us an email or give us a call at (410) 637-3750. A Live Baltimore team member can walk you through your options.
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