Renovation Loans Arizona | FHA 203k
Renovation loans like the FHA 203k allow you to finance both the home purchase and renovation costs in a single loan. Perfect for fixer-uppers and properties needing work, renovation loans eliminate the need for separate construction and home improvement loans. Contact Todd Uzzell at 480-330-1724 for fast pre-qualification and expert guidance.
Why Choose Renovation Loans Arizona | FHA 203k?
One Loan for Purchase + Renovation
FHA 203k finances home purchase and renovation costs together. Borrow based on after-repair value (ARV) instead of current condition.
Low Down Payments (3.5%)
FHA 203k requires just 3.5% down on the after-repair value. Significantly lower than hard money or investment property loans.
Flexible Renovation Budgets
Can finance from minor repairs to complete gut renovations. Structural improvements, systems replacement, kitchen/bath remodels all covered.
Fixed Interest Rates
FHA 203k locks your rate at closing. Rate carries through construction and into permanent mortgage. No rate surprises mid-project.
Competitive Interest Rates
FHA 203k rates typically 0.5-1% higher than standard FHA loans. Lower than hard money, portfolio, or personal loans.
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Free pre-qualification in 24 hours. No obligation, no credit check needed.
Start Your ApplicationSchedule Free ConsultationFrequently Asked Questions
What is the FHA 203k loan?
FHA 203k finances home purchase and renovation costs together. Borrow based on after-repair value (ARV) with 3.5% down. Loan converts to standard mortgage upon completion.
What renovations qualify for FHA 203k?
Structural repairs, roof/HVAC/plumbing/electrical replacement, kitchen/bathroom remodels, accessibility improvements, energy-efficient upgrades. Non-qualifying: luxury items, pools, cosmetic-only work.
How much can I borrow for an FHA 203k renovation?
Borrow based on after-repair value with 3.5% down. If home worth $200k now but $250k after repairs, borrow up to $241k (3.5% down on ARV).
Do I need a licensed contractor for FHA 203k?
For repairs over $5,000 yes, you need licensed contractor. Under $5,000 you can use non-licensed workers. Lender requires contractor bids and inspections.
How long does an FHA 203k take?
45-60 days pre-renovation closing. Construction phase 30-120 days depending on scope. Upon completion and final inspection, loan converts to permanent mortgage.
Can I do the work myself on FHA 203k?
No. All work must be done by licensed contractors (for items over $5,000). Owner-builder is not allowed on FHA 203k loans.
What's included in FHA 203k budget?
Construction costs, contractor contingency (10-20%), construction loan interest during work, property taxes/insurance during construction, appraisal, title insurance, closing costs.
Can I live in the home during FHA 203k construction?
No. You cannot occupy the home while construction is underway. Must wait until completion and final inspection before occupancy.
What if renovations cost more than budgeted?
Request budget increase (subject to lender approval) or pay overage out-of-pocket. 10-15% budget contingency recommended to avoid cost overruns.
Can I get FHA 203k with bad credit?
Yes. FHA 203k accepts 580+ credit. Manual underwriting available for 540+ with compensating factors. Similar to standard FHA loan requirements.
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About Todd Uzzell
Todd Uzzell (NMLS #1525192) is a licensed Arizona mortgage lender with Starboard Financial. Specializing in renovation loans arizona | fha 203k throughout Arizona.
Contact Todd:
Phone: 480-330-1724
Email: todd.uzzell@gmail.com