Tim Bradford 216-324-8113

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FHA 203K Mortgage

FHA 203 (K) Renovation
Additional Information available at

203k Printable Flyer

203K Eligible Borrowers:

  • Owner Occupants - Purchase - Refinance
  • Non- Profits
  • Investors NOT allowed

Types of 203K Loans:

  • 30 or 15 year fixed rates
  • One year ARMS
  • Assumable to a qualified buyer, with no money down

Eligible Properties:

  • Single family dwellings
  • Condominium
  • Townhouse
  • Mixed Use (Storefront)
  • 1-4 Unit buildings- you can increase or decrease the number of units with this loan.


Home Inspection:

The cost of your construction is estimated by an FHA Approved 203(k) consultant(estimator). The cost consultant assists you in determining the scope of repairs and the costs budgeted for renovation job.

  • Perform a home inspection to create preliminary costs estimates based upon FHA minimum property standards plus the scope of work as defined by the home owner/buyer.
  • Once the projects has been determined, the cost consultant prepares a "work-write up" and 3 contractor bid packages are issued to the home owner/buyer.


The appraiser will be given a copy of your "work write up" to estimate an after improved value for your new or current home. We loan agianst the improved value thus allowing you to finance the cost of repairs.

Other Eligible Cost:

  • Contingency reserve (10-15%)
  • Up to 6 months PITI mortgage payments
  • Permit costs
  • Consultant fees
  • Inspection and title update fees
  • Architectural & Engineering fees (if needed)

Eligible Work Items

  • Repair/replacement roofs, gutters and downspouts
  • Repair/replacement/upgrade of existing HVAC systems
  • Repair/replacement/upgrade of plumbing and electrical system
  • Repair/replacement of flooring
  • Exterior and interior painting
  • Minor remodeling, such as kitchens, which do not involve structural repairs.
  • Weatherization; including storm windows and doors, insulation, weather stripping, etc.
  • Purchase and installation of appliances - including free-standing range, refrigerators, washers/dryers, dishwashers and microwaves.
  • Improvements for accessibility for persons with disabilities
  • Lead based paint stabilization or abatement (HUD REO's)
  • Repair/replace/add exterior decks, patios, porches
  • Basement finishing and remodeling, which does not involve structural repairs.
  • Window/door replacements and exterior wall re-siding
  • Septic systems and/or well repair or replacement

Ineligible Work Items
Any items that do not appear on the eligible list of that would:

  • Necessitate a "consultant" to develope a "Specification of Repairs/Work Write-Up"
  • Require plans or architectural exhibits;
  • Require a plan reviewer
  • Require more thatn six months to complete (HUD will not grant extensions)
  • Result in work not starting within 30 days after loan closing; or
  • Cause the mortgagor tp be displaced from the property after mortgage loan closing.

Structural Alteration and Reconstruction:

  • Changes for improved functions and modernization
  • Elimination of health/safty hazards
  • Changes for aesthetic appeal
  • Plumbing, heating air conditioning, and electrical upgrades
  • Well and/or septic repairs
  • Roofing, gutters and downspouts
  • Flooring, tiling and carpeting
  • Energy conservation improvements
  • Major landscape work and site improvement
  • Access for the disabled

Here are a few suggestions to get you started:

  • Get pre-approved using our online application
  • Locate a home and submit a contract
  • Once the contract is accepted, contact us for the names of FHA approved consultants to get you started.

Additional Information available at

Timothy Bradford, Loan Officer
American Midwest Mortgage Corporation
6363 York Road, Suite 300, Parma Heights, OH  44130
Direct:  (216) 324-8113
Cell:  (216) 324-8113
Office:  (440) 884-5000 Ext. 269
Fax:  (440) 884-5034
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