FHA 203(k) Rehabilitation Mortgage

Federal Housing Administration (FHA) / HUD

Available Home Repair

About This Program

FHA 203(k) Rehabilitation Mortgage is available to homeowners in Birmingham, AL.

The FHA 203(k) loan allows homebuyers and existing owners to finance both the purchase (or refinance) and renovation of a home in a single mortgage. The Limited 203(k) covers minor repairs and improvements up to $75,000, while the Standard 203(k) accommodates major structural work up to the 2025 FHA loan limit of $806,500. Minimum down payment is 3.5% for qualifying borrowers.

Combines purchase/refi + rehab costs; Limited up to $75,000 rehab; Standard up to county FHA limit.

Verified against Federal Housing Administration (FHA) / HUD's official page on 2026-06-17.

Data last verified 2026-04-03. How we verify our data.

This is a national program. In Birmingham, AL, you can stack it with local programs like these:

Key Details

  • Limited 203(k): rehab costs up to $75,000 for minor repairs
  • Standard 203(k): major structural work, no separate rehab cap
  • Minimum 3.5% down payment (FHA credit score requirements apply)
  • Must use HUD-approved consultant for Standard 203(k)
  • Available through FHA-approved lenders in Birmingham

How to Apply

Get free help applying Visit Official Program Page Track this program

800-767-7468

A grant-savvy contractor in Birmingham, AL can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Birmingham early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

An FHA mortgage that rolls the cost of repairs or renovation into the loan to buy or refinance a home. The rehab work must total at least 5,000 dollars. You apply through an FHA approved lender, not a government office.

Steps to apply

  1. Find an FHA approved lender that offers the 203(k) program.
  2. Apply with that lender and choose Standard 203(k) (larger projects) or Limited 203(k).
  3. The lender brings in a HUD approved 203(k) consultant who prepares a work write-up and cost estimate.
  4. The lender underwrites, closes, and funds the loan, and the repair funds are released as the work is done.
Get the official form

Documents you will likely need

  • Standard mortgage application documents (income, assets, credit).
  • Contractor bids and a work write-up for the planned repairs.
  • Information about the property you are buying or refinancing.
Download this checklist (PDF)

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: No deadline; apply through FHA-approved lender

Questions about this program?

Ask us. It is free, and a real person answers within a business day.

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Frequently asked questions

How much can FHA 203(k) Rehabilitation Mortgage provide in Birmingham, AL?

Up to 2025 FHA loan limit ($806,500 standard; $75,000 limited rehab).

Who qualifies for FHA 203(k) Rehabilitation Mortgage in Birmingham?

FHA 203(k) Rehabilitation Mortgage is open to homeowners in Birmingham, AL.

How do I apply for FHA 203(k) Rehabilitation Mortgage in Birmingham, AL?

Apply directly with Federal Housing Administration (FHA) / HUD using the official program link on this page or call 800-767-7468. There is no middleman and no fee.

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