🎨 FHA 203(k) Limited
Small budget, big transformation
The 203(k) Limited (you may have heard it called the "Streamline") wraps up to $75,000 of renovation into a standard FHA loan. New kitchen, new baths, flooring, paint, roof, HVAC, windows — the projects that make a dated house feel like your house — financed at purchase, with FHA's famously friendly 3.5% down.
Is this you?
FHA 203(k) Limited tends to be a great fit for…
- Buyers eyeing a cosmetically dated home — solid bones, ugly finishes
- Projects under $75,000 with no structural work required
- Buyers with credit scores in the 580–680 range
- First-time buyers who want one loan and one closing, not a purchase plus a construction loan
Questions people actually ask
FHA 203(k) Limited: straight answers
What can I fix with a 203(k) Limited?
Non-structural repairs and improvements: kitchens, bathrooms, flooring, paint, roofing, windows, HVAC, plumbing and electrical updates, appliances, and accessibility improvements. If the project moves walls, adds square footage, or requires structural engineering, you graduate to the 203(k) Standard instead.
How does the money get to my contractor?
Renovation funds sit in an escrow account managed by the lender. Your contractor typically receives up to 50% at closing to start work and the balance when the work passes inspection. You never have to front the renovation out of pocket.
How long do I have to finish the renovation?
Nine months from closing under current FHA rules. Most Limited-scope projects finish well inside that window — your contractor commits to a timeline in the bid Ashland submits with the loan.
Do I need a HUD consultant for the Limited version?
No — that's one of the big simplifications versus the 203(k) Standard. You need a written contractor bid and a clear scope of work, and Ashland helps you package both correctly the first time.
Keep exploring
FHA 203(k) Standard
The full-gut option — structural work, additions, and major rehab financed into one FHA mortgage, guided by a HUD consultant.
Learn more →HomeStyle Renovation
Fannie Mae's conventional renovation loan — flexible projects (yes, even pools), second homes and investment properties welcome.
Learn more →CHOICERenovation
Freddie Mac's renovation loan — HomeStyle's twin, plus a streamlined eXPress version for smaller projects.
Learn more →Not sure if FHA 203(k) Limited is right for you?
That's literally what Ashland is for. One conversation, all your options side by side, zero pressure to move forward.