If you have been shopping for a home and have considered a HUD FHA 203K Loan to purchase and renovate you may have wondered how much down payment you would need? Or how to figure out a 203K down payment with rehab included? You may be surprised to know the 203K down payment is exactly the same as the Standard FHA 203B down payment which is three and a half percent (3.5%). You would think an FHA home purchase loan that includes rehab and renovation would require a larger down payment than a “regular” FHA loan that does not have that feature, but surprisingly it’s not! Now although the down payment for an FHA 203K loan is the same as a FHA 203B loan, a 203K down payment has some differences when it comes to figuring it out.


For an FHA 203K purchase, the down payment is calculated from the total of the following: The contract sale price you and the seller agreed to (+) the cost of improvements (+) the Costs & Fees related to the 203K Loan. Once you have this total you can then calculate it with the 3.5% to get your down payment.

Here some examples:


Purchase Price $75,000
Rehab Cost (including fees) $25,000
TOTAL $100,000
$100,000 x 3.5 % $3,500 Minimum Down Payment


Purchase Price $500,000
Rehab Cost (including fees) $100,000
TOTAL $600,000
$600,000 x 3.5 % $21,000 Minimum Down Payment


FHA Loans have always been known for their low down payment but did you know the down payment can also come from gifted funds? You read right! Not only can you get into your new home with the lowest down payment available, it can also come from someone else, plus the closing cost can be covered by the seller.


So if you’re in the market to buy a property, an FHA 203K Loan may be the right loan for you. With its low down payment, low interest rate and it’s “All in One” financing, a 203K loan can immediately turn the house you are buying into the home you always wanted without exhausting all of your funds you have saved.


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  • Great Infomation on the FHA 203k program, its a very informative and a easy format to umderstand.

    I will bookmark and come back often.

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