203 (k)

FHA 203k Loans

Fixer Upper

Sometimes called a “rehab” or a construction loan, an FHA 203k loan helps the borrower finance not only the house, but any necessary or desired repairs. Lenders don’t usually approve loans on homes in disrepair. However, in this case, they will track and verify that construction is taking place. If your dream home is a fixer upper, this is the loan for you.



  • 3.5% down payment. Can be a gift from an immediate family member.
  • Seller can pay up to 6% of the sale price towards your closing costs.
  • Moderate monthly mortgage insurance. Can be lower than conventional with lower credit scores.
  • Michigan FHA Loan Limits apply.
  • No geographic restrictions.
  • Gifts from immediate family members to cover down payment and closing costs are acceptable.

General Loan


  • Credit score minimum of 580 possible.  No scores are acceptable with a blank credit report (nothing good or bad). However, 3 non-traditional credit references will be required.
  • No previous mortgage loan late payment in the past 12 months.
  • No foreclosure in the past 36 months. Must have rebuilt credit.
  • No bankruptcies in the past 24 months. Must have rebuilt credit.
  • All court ordered judgments MUST be satisfied or have a satisfactory payment history.

Buy Your Fixer Upper Dream Home

Loan For Home + Repairs

There are two types of FHA 203k loans – limited and standard. The 203k Limited caps repairs at $35,000 and has more restrictions related to the types of repairs being performed. In addition, the home must remain habitable throughout the entire process. The 203k Standard has no maximum amount on repairs and allows for a wider range of repairs and renovation. However, the paperwork and approval process for the 203k Standard is more complex.

Do you qualify?

Income Limits

Like a traditional FHA loan, an FHA 203k loan is backed by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). Because the FHA protects lenders, this type of loan is more accessible to creditworthy individuals who may have low to modern incomes and do not meet the requirements for a traditional loan. However, the 203k loan has its own restrictions. In general, these are related to the type of construction performed and the certification of contractors hired. FHA 203k loans are also subject to the FHA loan limits for your region.

Contact Us

Get In Touch

Looking for loan advice? We’d love to see if we can help you fix up your future home with an FHA 203k loan. Call us at 810-227-5600.

Other Loan Options

One size doesn’t fit all. We are confident that one of our loan options will be perfect for you.

203 (k)

Get that home loan and the home improvements all wrapped up in one loan.

Conventional Loan

A standard home loan not needing to be backed up by any other agency.

FHA Loan

Loans backed up by the Federal Housing Administration that require insurance on the loan.


Is a form of a FHA Loan for qualified buyers with a qualified credit score.

Veteran Loans

The VA loan is a mortgage option available to Veterans, Service Members and select military spouses for $0 down.

Physician Mortgage Loan

A Unique loan specially crafted for physicians.

About us

Why Choose Mortgage 1

Since 1994, Mortgage 1 has been helping families throughout Michigan. We offer conventional, FHA, Rural Development, MSHDA and VA home loans for both purchase and refinance. We also offer other loan options if you do not fit the guidelines of these typical mortgage loans, such as Doctor Loans and rehabilitation loans. We will walk you through each step from getting pre-approved, shopping for homes and making an offer.

We believe in treating every client and business partner with the service and respect they deserve. With this principle in mind, it ensures satisfied clients and business partners which result in referrals into the future. I would be honored to assist you and your family with your home loan. Whether you are purchasing your first home or refinancing your current home, allow me to assist you every step of the way so that you have an exceptional experience.


Mortgage 1 Brighton

Mortgage One Brighton guides clients to the best loan options available from trusted, responsive and confident advisors. We help you achieve the joy of home ownership while we gain life long friends.



Rick Fernandez
NMLS #136110


Get In Touch

(810) 227-5600

5925 Meridian #200
Brighton, MI 48116