Question 1

What is an FHA 203(k) renovation loan?

Accepted Answer

It is a single mortgage that covers both the purchase of a home and the cost of repairing it. Instead of buying a tired home and finding the cash to fix it, you borrow enough up front and make one payment. There are two versions, the Limited 203(k) for smaller jobs and the Standard 203(k) for structural work.

Question 2

Is Eliteco Builders a lender or HUD consultant?

Accepted Answer

No. We are a licensed general contractor, not a lender, mortgage broker, or HUD consultant. We write the construction bid, do the work, and coordinate with your lender and the 203(k) consultant. Financing questions go to your FHA-approved lender and to hud.gov.

Question 3

What does the contractor do on a 203(k) project?

Accepted Answer

We walk the property, scope the work, and write a detailed itemized bid. We pull the permits, run the trades, do the construction on schedule, coordinate the inspections that release each draw, and close out with the documentation your lender needs.

Question 4

What is the difference between Limited and Standard 203(k)?

Accepted Answer

The Limited 203(k) is for smaller, non-structural jobs under a set cap. The Standard 203(k) is for bigger structural work and uses a 203(k) consultant who writes the scope and inspects the milestones. Your lender and consultant help you decide which path fits your project.

Question 5

How do draws and payments work?

Accepted Answer

The lender holds the renovation funds and releases them in draws as work is completed and inspected. On a Standard project, the consultant inspects each milestone before the draw pays out. You are never paying for work that is not done.

Question 6

What is the contingency reserve?

Accepted Answer

It is a portion of the renovation budget held back for the work the consultant expects to find but cannot see, like rotted framing behind a wall. If we find it, the contingency covers the repair. If we do not, the reserve is handled per the loan terms.

Question 7

Can I pick my own contractor and lender?

Accepted Answer

Yes. You choose your contractor and your FHA-approved lender. The lender and consultant review the contractor's bid and qualifications, and the work has to be done by a contractor the lender accepts.

Question 8

Can a 203(k) cover a roof, masonry, or structural work?

Accepted Answer

Repairs that address a real need, including roofs, masonry, and structural work, are commonly part of the scope. Your consultant confirms eligibility for the specific items.

Question 9

Are you HUD approved or 203(k) certified?

Accepted Answer

No contractor is HUD certified or HUD approved for 203(k). Those terms do not apply to contractors. We are a licensed general contractor experienced with the 203(k) process.

Question 10

Where do I get loan limits, rates, and eligibility details?

Accepted Answer

Loan programs, limits, and eligibility are set by HUD and your lender, and they change over time. We do not provide those figures. Talk to an FHA-approved lender for current financing details, and see hud.gov for official guidance.

FHA 203(K) RENOVATION FAQ