South Carolina · Your home. Your next step.
South Carolina FHA 203(k) Rehab Loans may help you buy a home and finance eligible repairs in one mortgage. See how the work, loan costs and finished-home payment fit together before you choose a fixer-upper.
Found a home in a place you love that needs some work? An FHA 203(k) loan may combine the purchase and approved repairs in one mortgage. If you already own the home, you may be able to refinance and include improvements. The loan, home and work all need approval. FHA insures the loan; a private lender makes it.
Choose the home and work with a contractor on written plans and costs. The lender reviews you, the property and project before closing. Approved repair funds are held and paid under the loan’s rules after closing.
If you own the home, ask about replacing the current mortgage and including approved work. Compare the new rate, fees and full payment with keeping your loan. Repair funds are controlled; this is not unrestricted cash to spend.
HUD’s 203(k) overview explains the purchase-and-repair and refinance-and-repair options.
HUD’s 203(k) consumer guide explains the project and consultant roles. Ask us how the selected lender handles payments, inspections and completion dates.
Compare your down payment or refinance costs with loan fees, contractor estimates, permits, inspections and any consultant fee. Ask for the cash needed at closing and what must stay in reserve. The CFPB Loan Estimate guide helps you read a written loan quote.
FHA 203(k) follows FHA mortgage-insurance rules, with upfront and ongoing costs. A conventional renovation loan may have mortgage insurance too. The CFPB mortgage-insurance guide explains how that cost works. Ask for the full payment rather than compare rates alone.
Ask about funds for unexpected work, where you will live and what bills you will pay while repairs are under way. Agree on dates with the lender and contractor before relying on a move-in plan. A renovation loan involves more review than a repair quote alone.
This option can cover eligible non-structural work, such as paint, flooring or minor kitchen updates. The total rehabilitation cost limit is $75,000, including applicable fees and reserves. A smaller budget does not make structural work eligible. A HUD-approved consultant is optional. HUD’s Standard and Limited comparison explains the difference.
Standard can cover eligible larger projects and structural repairs. Rehabilitation costs must be at least $5,000, and a HUD-approved 203(k) consultant is required. It does not use Limited’s $75,000 ceiling, but the mortgage, value and project rules still limit the loan.
For an FHA 203(k) home purchase, plan to live in the home. The property and work must fit the program; eligible condo work is limited to the unit’s interior. Ask the lender about the home before signing a work contract.
FHA mortgage limits depend on the county, loan year and number of units. A repair allowance is not the total loan limit or the home’s purchase-price cap. Use HUD’s county and unit lookup to check the property.
The lender holds the repair funds and releases payments under the approved plan. Inspections and completion checks may be needed before money is released. Ask how changes to the work must be approved. Do not assume you can change the budget or receive the unused money as cash.
| Loan choice | What to compare |
|---|---|
Conventional renovation | HomeStyle is another purchase or refinance option for eligible renovations. The loan and work need their own review. Fannie Mae’s HomeStyle guide explains how it works. |
Keep your mortgage and compare home equity | If you own the home, compare a home equity loan or line of credit with replacing your mortgage. Look at fees, payment changes and the risk of adding debt secured by your home. The CFPB home-equity guide explains the choices. |
The people behind your next step
Beaufort Lending is a mortgage broker in Port Royal, helping buyers across South Carolina. We shop loans from wholesale lenders, then help you compare payments and closing costs. Our team explains your choices in plain words and helps you see what fits your budget. From your first questions to closing, you have people to turn to for help.
Gracie went above and beyond to make my home loan process smooth and stress-free after my previous lender kept delaying my closing.
They were clear, knowledgeable, and prompt in answering our questions at all hours.
His guidance made every step feel manageable, even when the situation changed quickly.
A refinance-and-renovate option may fit. It replaces the current mortgage and includes approved work. Compare the new loan’s total cost with keeping your mortgage and using another way to pay for repairs.
You can propose a contractor, but the lender needs to review the contractor and work before approval. Ask about local licensing and any records the lender needs before signing an agreement.
Ask the lender before planning on your own labor. Program and lender rules differ. Do not count on being paid for your time or use a do-it-yourself plan before it is reviewed.
Talk with the lender and contractor before changing the work or budget. Ask how extra costs would be covered, what approvals are needed and whether the plan still fits the loan.
Spending a dollar on repairs does not promise a dollar of added value. Compare the price or current loan, work budget and full payment without counting on an equity gain.
Learning Center
Explore the questions that can help with your next decision.
Beaufort · Before you buy
Plan the home budget, fees and cash you want left after closing.
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South Carolina · Comparing costs
Compare a lower price with a temporary payment incentive before choosing an offer.
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Hilton Head Island · Jumbo loan choices
Considering a condo? This Hilton Head guide discusses home use and shared costs; dated market figures are historical.
Read the guideYour next step
Share the address, price or current mortgage, and the work you have in mind. The Beaufort Lending team can help you compare the loan choices, costs and next steps.
Benji Gecy, NMLS #302188 · Beaufort Lending, NMLS #1703543 · Equal Housing Lender
