How much down payment FHA 203(k) requires — as low as 3.5% on purchase plus rehab against after-improved value.
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FHA 203(k) typically allows as little as 3.5% down with qualifying credit. On Limited 203(k) Streamline, purchase LTV is capped at 96.5% of after-repair value and rate/term refinance at 97.75% — calculated on the combined purchase-and-rehab structure, not just the listing price.
Your cash-to-close depends on credit tier, LTV on after-improved value, and what sits outside the rehab escrow.
FHA 203(k) underwriting looks at the total mortgage amount needed for acquisition and eligible rehab, then applies FHA LTV limits against the after-improved appraisal. That is why a $250,000 purchase with $40,000 of rehab is not “3.5% of $250,000” in isolation.
Share the purchase price, rehab bids, and gift plans — Ryan & Steve will estimate down payment, closing costs, and FHA vs HomeStyle side by side.
All loans are subject to credit and property approval. FHA program guidelines, eligible improvement lists, MIP rules, and pricing are subject to change without notice and may not be available in all areas. This website is not affiliated with or endorsed by HUD, FHA, or any government agency. Information is for educational purposes only and is not a commitment to lend.