FHA 203(k) repairs let you finance the purchase (or refinance) of a home and eligible renovations in one mortgage. In 2025, buyers use this rehab loan to tackle essential fixes, improve safety and energy efficiency, and boost long-term value—often with just one closing and one monthly payment.

Below, we break down the 7 powerful categories of FHA 203(k) repairs that are typically covered, what’s not covered, and how to choose between the Limited and Standard versions. We’ll also link straight to official HUD resources so you can verify every detail.

Limited vs. Standard 203(k): The quick, no-nonsense split

• Limited 203(k): For minor, non-structural work. HUD’s 2024 update set the rehab cap at up to $75,000 in eligible costs (confirm lender overlays). HUD Mortgagee Letter 2024-13
• Standard 203(k): For major projects and structural work. Requires an FHA-approved 203(k) Consultant and a more detailed scope. See HUD’s program page and Handbook references below.

What FHA 203(k) repairs are covered in 2025?

Here are seven high-impact categories of FHA 203(k) repairs commonly eligible under HUD rules. Always confirm specifics with your lender and the latest HUD guidance.

1) Health & Safety Corrections

Repairs that remove health/safety hazards and bring the property up to FHA’s Minimum Property Requirements (MPR) are core FHA 203(k) repairs. Examples: fixing faulty stairs/rails, addressing code violations, repairing dangerous wiring, remediating lead-based paint or asbestos (per regulations), and correcting trip/fall hazards.

2) Structural Repairs & Additions (Standard 203(k))

Standard 203(k) can include structural work: foundation repair, framing, load-bearing wall fixes, additions, or converting unfinished areas (e.g., a legal bedroom in an attic/basement). These FHA 203(k) repairs require plans, permits, and oversight by a 203(k) Consultant.

3) Major Systems: Electrical, Plumbing, HVAC

Replacing outdated panels, rewiring, re-plumbing, repiping, replacing the water heater, and installing or upgrading HVAC (including ductwork) all fit squarely within eligible FHA 203(k) repairs. These upgrades often improve safety, comfort, and insurability.

4) Roofing, Siding, Windows & Weatherproofing

Roof replacement, gutters, downspouts, siding repair/replacement, window and exterior door upgrades, and insulation are classic FHA 203(k) repairs. Tightening the envelope cuts energy costs and helps your appraisal.

5) Kitchens, Baths & Interior Finishes

Remodeling kitchens and bathrooms, replacing cabinets/counters, tile, flooring, fixtures, and built-in appliances (not luxury brands for luxury’s sake) are commonly allowed FHA 203(k) repairs, provided they’re permanent improvements to the real property.

6) Accessibility & Code Modernization

Adding accessibility features (e.g., ramps, wider doorways, grab bars), installing smoke/CO detectors, or other code-driven modernization typically qualifies as eligible FHA 203(k) repairs. These changes expand usability and resale appeal.

7) Site & Drainage Improvements (Function, Not Luxury)

Grading, drainage corrections, retaining walls, walkways, and basic landscaping to protect the structure can be acceptable FHA 203(k) repairs. Focus on function and safety—not decorative or luxury items.

What’s usually not covered

• Luxury items (swimming pools, outdoor kitchens, hot tubs, saunas, tennis courts).
• Purely recreational additions or artwork/fountains.
• Items not permanently affixed to the property.

When in doubt, ask your lender to review your scope against HUD’s eligible improvements list. Avoid surprises by confirming FHA 203(k) repairs before you write offers or lock bids.

How to choose the right 203(k) path (fast framework)

1. Start with the inspection/appraisal notes. List mandatory fixes first (safety, code, MPR). These are priority FHA 203(k) repairs.
2. Decide: structural or not? Structural = Standard 203(k) with a Consultant. Cosmetic/non-structural may fit Limited 203(k).
3. Right-size the budget. Price the scope, add a contingency (often 10–20%), then match to Limited vs. Standard caps and lender overlays.
4. Line up the team. Choose an FHA-approved lender, a 203(k) Consultant (for Standard), and a contractor with 203(k) experience.
5. Sequence smartly. Prioritize safety and systems before finish work to protect your timeline and appraisal.

Pro tips to get to the finish line

• Write a crystal-clear scope. The more specific your bid, the smoother your draw process on approved FHA 203(k) repairs.
• Plan for temporary living. Some Standard 203(k) projects make the home unlivable—build that into your timeline and budget.
• Document everything. Photos, permits, and invoices help keep draws moving and minimize re-inspections.
• Confirm “after-improved” value assumptions. Your ARV drives loan size. Keep FHA 203(k) repairs aligned with comps and neighborhood norms.

Authoritative resources (verify the rules yourself)

• HUD: 203(k) Rehabilitation Mortgage Insurance Program — eligible improvements & program overview.
• HUD: 203(k) Program Types (Limited vs. Standard).
• HUD Mortgagee Letter 2024-13 — Limited 203(k) rehab cap updated to $75,000 and other policy clarifications.
• HUD Consumer Fact Sheet: 203(k) — borrower-friendly summary.
• HUD Program Comparison Fact Sheet — side-by-side Limited vs. Standard.

What to read next

Keep learning with these BREC guides:

• More articles on financing & rehab strategy
• BREC Resources: high-trust links and tools
• Join BREC for checklists, templates, and member-only tools.