FHA 203(k) vs Conventional Renovation Loan
**FHA 203(k)** wraps purchase and rehab into one FHA loan—low down but MIP and FHA caps. **Conventional renovation** loans allow higher balances with PMI rules based on down payment.
Step by step
1. Project scope
Contractor bids and timelines required for both.
2. All-in payment
Model PITI on completed value after repairs.
3. Timeline risk
Delays can extend rent/double housing costs.
203(k) vs conventional rehab
Feasibility and contractor experience drive success more than small rate differences.
- FHA 203(k): Low down; MIP; FHA limits.
- Conventional rehab: Higher limits; PMI if <20% down.
Use our calculators
Common mistakes
- Underestimating contingency budget
- Starting work before funding closes
FAQ
Can DIY with 203(k)?
Limited DIY—most work needs licensed contractors.