Can an FHA 203(k) loan pay for a kitchen or an addition?
Yes, when you are buying or refinancing a home you will live in. The FHA 203(k) Rehabilitation Loan from the US Department of Housing and Urban Development (HUD), made through FHA approved lenders, rolls the renovation into the mortgage. HUD lists kitchen and bathroom remodeling and flooring, and room additions under the Standard 203(k). The lender and HUD's rules decide eligibility, and this was current as of October 2026.
What a 203(k) can cover
HUD's list is long. Roofing, plumbing, electrical, HVAC, structural repairs and room additions come under the Standard 203(k). Kitchen and bathroom remodeling, flooring, painting, accessibility improvements, energy upgrades, lead based paint remediation and basement waterproofing are on it too.
From that list, we build additions, remodel kitchens and bathrooms, and put down floors, and our group handles the roofing, plumbing and HVAC work on the same loan.
Limited or Standard
The loan takes 3.5 percent down on a primary residence. HUD splits it in two. The Limited 203(k) covers smaller projects with no structural work. The Standard 203(k) covers structural work and additions, and it requires a HUD consultant.
An addition is structural work, so plan on the Standard version and a consultant. A kitchen or bath that keeps its walls where they are may fit the Limited one. Your lender makes that call.
What it won't pay for
HUD rules out luxury items such as pools and hot tubs, any work started before closing, and investment properties.
That middle rule catches people who get the keys and want to start. Nothing should be torn out until the loan closes.
How the contractor is paid, and the six month clock
The renovation money sits in escrow and pays the contractor in draws as work is completed and inspected. The work has to finish within six months of closing.
The six months start at closing, not when work starts. Settle the scope and the price before you close. On an addition, the drawings and the permit belong in that early stretch too.
How to apply
The loan is made through FHA approved lenders, so the application starts with one of them. Ask early whether the lender handles 203(k) loans at all, and which version fits your project.
Where we fit
We are not a lender and not a HUD consultant. Nothing on this page means a lender or HUD has approved us, and we do not apply for the loan for you.
Our part is the bid the loan is sized from. We walk the house, then send a written estimate with the scope itemized, by text within 24 to 48 hours of the visit. We don't publish remodel prices, because the estimate for your house is the price, and that is the document a lender or consultant reads.
Services this program can pay for
Get the itemized estimate your lender will ask for
Tell us the address, the work and your closing date if you have one, and we'll book a walkthrough. The lender decides the loan. Or call (240) 695-4415.
We take insurance jobs. Financing may also be available for qualifying projects. See financing options.
Where this comes from: The FHA 203(k) Rehabilitation Loan, run by the US Department of Housing and Urban Development (HUD) through FHA approved lenders. Terms as HUD sets them, current as of October 2026.