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The FHA 203k Rehab Loan "Fixer Upper" Loan in MN, WI, and SD


FHA 203k Streamline Loan Details | FHA 203k Mortgage Rates | FHA 203k Loan Application |

An important tool for community and neighborhood revitalization in Minnesota, Wisconsin, and South Dakota is the FHA 203k loan program. This government program allows you to both buy the home, AND get the money to repair the home all in one easy mortgage loan.

There is no doubt that the current real estate market offers a lot of great bargains on short-sale, and foreclosed homes. However, many of these homes are in less than perfect condition. Many just have simple cosmetic issues, like ruined carpet, or in need of painting. Others need a new roof, or the previous owner vandalized the house, leaving them with missing cabinets, or missing appliances. 

Traditional mortgage loans do not allow you to buy a home not in a livable condition - meaning the day you buy the home, you could not live there. Homes in this condition are very difficult to buy, as mortgage companies generally will not lend on a damaged home.

FHA 203k Loan to the Rescue

This is where the little known program called the FHA 203K Rehab loan comes in. The FHA 203K loan is becoming very necessary for the purchase of many properties in need of repair to come back to their full glory. FHA 203K streamlines loans make the process of buying a home that needs a little TLC (or quite a bit in some cases!) easier, more affordable, and quicker.

Made available to certain lenders by the U.S. Department of Housing and Urban Development (HUD), the FHA 203(k) program has provides many home buyers with the funds necessary to buy their first home, or greatly improve a current home. The FHA 203(k) loan is available to borrowers of all income levels, to homeowners who plan to occupy the house, and for homes with one to four units.

The FHA 203k Rehab Loan has:


203k loans in MN, WI, SDHere are a few suggestions to get you started on buying a fixer-upper with an FHA 203k loan in MN, WI, and SD:

If you find a great home, but in need of some repairs, contact a general contractor to obtain repair estimates for the required repair work;

TIP: It is best to obtain repair bids BEFORE making your offer:

Once your offer is accepted, contact us to guide you the rest of the way to a successful closing of your new home!

NOTE: YOU are NOT allowed to do any repairs.  All repairs MUST be made by a licensed contractor.

203k loan application for MN, WI, SD

Have 203k loan Questions? Call (651) 552-3681, send us an Email, or chat live if available.


There are two types of FHA 203k loans to understand:203k experts in MN, SD, and WI

These two versions of the 203k loans are known as either a Full 203k, or a Streamline 203k. A Full 203k is for repairs OVER $35,000. Streamline 203k on the other hand, is for repairs UNDER $35,000.

Mortgages Unlimited OFFERS both full 203k and streamline 203k. Streamline 203k loans work best for the vast majority of home repairs homebuyers. These are offered up to the maximum FHA loan limit in your county.

FHA 203(k) Streamline Loan

The FHA 203K Streamline program allows the homebuyer to put up to $35K of rehab work into the new loan. The loan closes JUST ONE time. It is your loan term permanent form of financing. It is NOT a short term construction loan. The Streamline program should not be confused with the more complicated FHA 203K rehab loan, which can accommodate major remodels, major damage repair, storm damage, etc. The FHA 203K Streamline rehab loan is just that - Streamlined.

This loan can help with new paint (in/out), new siding, new roof, new flooring, new appliances, HVAC repair/replacement, electrical & plumbing repair & upgrades, new windows, decks, porches, patios, minor kitchen remodels, & more.

What the streamline loan can't cover is landscaping, structural damage, foundation work, room additions, load bearing wall changes, etc.

There is no HUD consultant or general contractor required on the 203k streamline. However, we do suggest using a general contractor with a strong track record to ensure that your work is done & done right. You can have up to three contractors, but we prefer you use just one.

203K Eligible Borrowers:

203K Loan Terms Available:

203k Eligible Properties:

Allowed 203k Streamline Repairs:

NOT Allowed 203k Streamline Repairs

FULL FHA 203K LOAN Requirements

The full 203k loan is for repairs over $35,000, and also allows for major remodeling. The full 203k loan does require you work with an FHA 203k Loan Consultant. This person helps make sure the scope of work required is correctly bid, and helps you decide what can or can not be included in the repairs.

Items allow include:

The 203k Loan Appraisal Requirements

The appraiser will be given a copy of your repair bids along with the purchase agreement.  The appraiser must say that the after improved value of the home will be at least 110% of the combination of the repair and purchase price.

For example: If the purchase price is $100,000, and your repairs are $25,000, the appraiser must say the house will be worth at least $113,635 when the repairs are done. ($113,635 X 110%) = $125.000

Other Eligible 203k Loan Costs:

FHA 203k Mortgage Rates

FHA 203k mortgage interest rates are slightly higher than a standard FHA loan due the increased risk to the lender. Generally the 203k loan interest rates run about .25% higher than a normal FHA loan.  You can check FHA loan interest rates in MN, WI, and SD here

FHA 203(k) loans require a little more time to close, and a little extra work to pull it all together. But there nothing to fear if you are working with a 203k expert like us, who will hold your hand, show you the way, and make the process as simple as possible.

Call (651) 552-3681 to get started, or simply apply online for your FHA 203k loan in MN, WI, or SD

FHA 203k lender in MN, WI, SD


NOTE: We offer USDA, VA and FHA Loans. While we are an approved lender, we are not part of HUD, FHA, The United States Government, or the Department of Veteran Affairs. We are not acting on behalf of, or under the direction of HUD/FHA or the Federal Government. FHA and VA do not lend directly to the public, only through approved lending institutions like Mortgages Unlimited.

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33 Wentworth Ave E - Suite 290
St Paul, MN 55118

(651) 552-3681  

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Our services available only for properties located in Minnesota, Wisconsin, and South Dakota. PLEASE DO NOT KEEP US A SECRET from your FRIENDS. Licensed as Mortgages Unlimited, Inc. NMLS #225504. As a Lenders One partner, we are part of the 3rd Largest Retail Mortgage Originators in the country. We are consistently ranked as one of the top mortgage lenders in Minnesota by Minneapolis St Paul Business Journal. Any use or duplication of any materials is  strictly prohibited.  All images, text, and materials Copyright 1998-2014 Joe Metzler. This is the private web site of Joe Metzler, NMLS #274132. All Rights Reserved.