FHA 203K Rehab Mortgage in Florida

Florida FHA 203K Mortgage

The Streamlined (203k) program is intended to facilitate and help with uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The total costs of repairs are not to exceed $35,000. This is kind of like a two month construction loan for current FHA customers (refis) and purchases of homes that need a little TLC. There is also a more complicated version of the 203K for repairs that cost over $35,000.



Common examples of uses for the 203K loan are for things like replacing a roof, fixing a bathroom,  fixing plumbing, fixing electrical or A/C. The basics of this program are designed for small functional improvements and not neccesarily cosmetic additions to the home. Maybe this is why pools are not covered within the guidelines.


Here is the complete list:

The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:

Repair/Replacement of roofs, gutters and downspouts

Repair/Replacement/upgrade of existing HVAC systems

Repair/Replacement/upgrade of plumbing and electrical systems

Repair/Replacement of flooring

Minor remodeling, such as kitchens, which does not involve structural repairs

Painting, both exterior and interior

Weatherization, including storm windows and doors, insulation, weather stripping, etc.

Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens

Accessibility improvements for persons with disabilities

Lead-based paint stabilization or abatement of lead-based paint hazards

Repair/replace/add exterior decks, patios, porches

Basement finishing and remodeling, which does not involve structural repairs

Basement waterproofing

Window and door replacements and exterior wall re-siding

Septic system and/or well repair or replacement


Here is a checklist of overstepping the intent of the 203K program.

We cannot help you in these cases


What improvements are INELIGIBLE under the Streamlined (k) program?

Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;

New construction (including room additions);

Repair of structural damage;

Repairs requiring detailed drawings or architectural exhibits;

Landscaping or similar site amenity improvements;

Any repair or improvement requiring a work schedule longer than three (3) months; or

Rehabilitation activities that require more than two (2) payments per specialized contractor;

Any repair or improvements to a pool . (This is hard to believe considering all of the green pools we have these days due to foreclosed and short sale properties)


FHA 203K Loan Florida



This is a good program that contractors should keep in mind.

If you approach an FHA customer and they need something fixed, this loan gives the homeower today's new fixed rates and at the same time solves the problem of where to find the financing . There is an appraisal involved with this program and some calculations on the cost of the job and escrowing for contingencies. This program takes into account value, so the FHA customer cannot be more than say 115% Loan to Value ot the loan will not cover everything and they will be writing a check at closing.

We will sit down and prepare the constuction cost worksheet and do the math. Then the cost of the job is figured into the after improvements value of the home.


I support Palm Beach County 203Kwhenever possible!






Here is a great article written by Marc Jablon who is a Realtor friend of mine who works in Boca Raton, Delray Beach, Boynton Beach and West Palm Beach

203K- A more constructive Boca Raton  home loan

Many  Boca Raton home buyers with mortgages find that the homes that fit into their price ranges have a few problems. For example, they need to have the bathrooms redone. Or the tile flooring is cracked and must be replaced.

Most Boca buyers would walk away in discouragement, because they do not have the extra funds to make these repairs after they make their purchase.  However, there is an loan backed by the Federal Housing Administration (FHA) called the 203K, that can help to alleviate this difficulty.

Useful loan, relatively unknown

Most buyers in Boca Raton are unaware of these loans, according to Preston Ware, a Palm Beach County mortgage broker who helps clients to obtain them on a regular basis.  Across the U.S, more than 21,000 home of these loans were written last year.

Not only can the 203K help new Boca Raton home owners, it can also be used by homeowners  whose insurance might not fully cover the cost of repairs due to hurricane damage.

Based on value of home after improvements

Although  banks typically do not lend against a home that has damage, a 203K  loan is based on the value of the house after the repairs or improvements are made.

Having worked with buyers who needed a 203K loan to purchase a new home, I can attest that a 203K takes longer than a standard home loan because there is far more paperwork involved.

Whereas a standard mortgage loan for a home in Boca Raton may take from 30-40 days, expect your 203K to drag on for at least another 20, with a few bumps in the road along the way. The bumps are standard; they are just the bank’s way to checking  and double checkingto make sure that every item on the extensive check list is covered: for example, if there is a legitimate estimate from a licensed contractor.

203K pays a contractor in stages

After the 203K loan is granted, the contractor is paid in stages; but not until the consultant from the Department of Housing and Urban Development (HID) inspects the contractor’s work.

For homeowners, who may be wary of the construction process, 203K procedures provide a large measure of oversight over work and payments. While there are many contractors who are uncomfortable this kind of payment schedule, there are sufficient numbers of  contractors who have some experience with the 203K system and will be pleased to work with you.

Marc Jablon

RE/MAX Complete Solutions



The Jablon Team

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