Edited and reviewed by CEO Vatche Saatdjian — 30+ years of experience — Expert on FHA renovation financing

FHA RENOVATION FINANCING

Buy a fixer-upper for less, make it yours

Can't afford Nevada's move-in ready homes? FHA 203(k) loans let you buy a distressed property with just 3.5% down—and finance the repairs in the same loan. One closing, one payment, your dream home.

3.5%
Min Down Payment
1 Loan
Purchase + Repairs
580
Min Credit Score

Perfect for Nevada's older neighborhoods

Limited 203(k): Fix cosmetic issues up to $35,000 (new carpet, paint, appliances).
Standard 203(k): Major renovations with no limit (structural, additions, full remodels).

Takes ~60 seconds • No credit check • See renovation options available

Nevada fixer-upper home before and after FHA 203k renovation showing transformation potential

Turn Fixer-Uppers into Equity

Finance up to $35K (Limited) or unlimited (Standard) in Nevada renovation costs

What Is an FHA 203(k) Rehab Loan?

The FHA 203(k) renovation loan combines purchase financing and renovation costs into a single mortgage, allowing Nevada buyers to finance fixerupper properties with low down payments and flexible credit requirements

Limited 203(k) – Up to $35,000

For minor renovations and non-structural repairs. Streamlined process with no consultant required.

  • Repairs up to $35,000
  • No consultant needed
  • Faster closing (30-45 days)
  • No structural work allowed

Standard 203(k) – Unlimited Repairs

For major renovations and structural repairs. Requires HUD consultant oversight.

  • Repairs over $35,000
  • HUD consultant required
  • Structural work allowed
  • 60-90 day closing timeline

Key Benefits of FHA 203(k) Loans

Low 3.5% Down Payment

Finance both purchase and renovations with minimal upfront cash

Single Loan, One Closing

Avoid construction loans and secondary financing hassles

Competitive Interest Rates

Get FHA's favorable rates on entire loan amount including repairs

Buy Distressed Properties

Purchase homes that won't qualify for standard FHA loans

Build Instant Equity

Buy below market and renovate for immediate value increase

580 Credit Score OK

Flexible credit requirements make fixer-uppers accessible

FHA 203(k) Requirements Nevada

Eligibility standards for FHA renovation loans in Nevada including credit, income, property, and renovation guidelines

Borrower Requirements

Credit Score

580 minimum for 3.5% down payment. Scores 500-579 require 10% down. Higher scores get better rates.

Down Payment

3.5% of as-completed value (purchase price + renovation costs). Gift funds from family allowed for entire down payment.

Debt-to-Income Ratio

Maximum 50% DTI with compensating factors. Includes future mortgage payment based on completed value.

Employment & Income

2 years stable employment or income history. W-2, self-employed, and retirement income all acceptable.

Occupancy

Primary residence only. Must move in within 60 days of completion. No investment properties or vacation homes.

Property & Renovation Requirements

Eligible Properties

Single-family homes, 2-4 unit properties, condos (FHA-approved), townhouses. Must be habitable after renovations.

Eligible Repairs

Structural, HVAC, roof, plumbing, electrical, kitchens, bathrooms, flooring, windows, landscaping, accessibility modifications

Not Allowed

Luxury items (pools, hot tubs), new construction on vacant land, repairs done before closing, DIY work in most cases

Loan Limits

Nevada FHA limits apply: Clark County $498,257, Washoe $571,950. Total = purchase + repairs cannot exceed limit.

Completion Timeline

6 months maximum from closing to complete all repairs. Extensions available if needed with FHA approval.

STEP-BY-STEP PROCESS

How FHA 203(k) Works in Nevada

It's simpler than you think. Here's exactly what happens from pre-approval to moving into your renovated home.

1

Get Pre-Approved for FHA 203(k)

Work with an FHA 203(k) approved lender to determine your buying power including renovation budget. Provide standard FHA documentation (income, credit, assets).

Timeline: 1-3 business days • Documents: Paystubs, tax returns, bank statements

2

Find & Evaluate Properties

Search for distressed or outdated homes in Nevada. Have contractor provide preliminary repair estimates. Calculate total project cost (purchase + repairs).

Pro tip: Look for homes 15-30% below market value with good bones but cosmetic issues

3

Make Offer & Get Under Contract

Submit offer contingent on financing and inspection. Include 203(k) financing clause. Get licensed contractors to provide detailed bids for all repairs.

Required: At least 2 contractor bids for each repair category (Standard 203k)

4

Submit Full Application & Documentation

Provide contractor bids, scope of work, architectural plans (if needed). Standard 203(k) requires HUD consultant to review feasibility and costs.

Limited 203(k)

Work write-up from contractor

Standard 203(k)

HUD consultant feasibility study

5

Appraisal Based on After-Repair Value

FHA appraiser evaluates property's as-completed value (not current condition). This determines your maximum loan amount and down payment calculation.

Example: $200K purchase + $50K repairs = $250K as-completed value (appraisal basis)

6

Underwriting & Loan Approval

Lender underwrites based on after-repair value. Verifies contractor licensing, insurance, and feasibility. Establishes renovation escrow holdback account.

Timeline: 10-15 business days after appraisal received

7

Close on the Loan

Sign closing documents. Renovation funds placed in escrow account. You take ownership but cannot move in until repairs complete (Standard 203k) or property is habitable (Limited 203k).

Closing costs: Similar to standard FHA (2-5%) plus consultant fees if applicable

8

Complete Renovations

Contractor begins work. Funds released from escrow in draws as work progresses. Lender or consultant inspects before each draw. Must finish within 6 months.

Draw Schedule

10% upfront, remainder in 3-5 draws

Inspections

Required before each fund release

Final Inspection & Move In

Lender conducts final inspection to verify all work complete per approved plans. Final escrow funds released to contractor. You can now move into your renovated Nevada home!

Occupancy deadline: Must move in within 60 days of project completion

Ready to start your 203(k) renovation project?

Answer a few quick questions to see if you qualify for FHA 203(k) financing and get connected with approved contractors in Nevada.

Eligible & Non-Eligible Repairs

Understanding what repairs and improvements you can finance with FHA 203(k) loans in Nevada

Eligible Repairs

Structural Repairs

  • • Foundation repairs & waterproofing
  • • Roof replacement or major repairs
  • • Wall removal or additions (structural)
  • • Load-bearing beam replacement

Major Systems

  • • HVAC system replacement or upgrade
  • • Complete electrical rewiring
  • • Plumbing replacement (copper, PEX)
  • • Water heater installation
  • • Septic system repairs

Interior Improvements

  • • Kitchen remodel (cabinets, counters, appliances)
  • • Bathroom renovation (fixtures, tile, plumbing)
  • • Flooring (hardwood, tile, carpet)
  • • Interior painting & drywall repair
  • • Window & door replacement

Exterior & Curb Appeal

  • • Siding replacement or repair
  • • Deck or patio construction
  • • Landscaping & grading improvements
  • • Driveway & walkway repairs
  • • Fence installation

Safety & Accessibility

  • • Lead paint abatement
  • • Asbestos removal
  • • Wheelchair ramps & accessibility mods
  • • Smoke & CO detectors
  • • Termite damage repair

Energy Efficiency

  • • Insulation upgrades (attic, walls)
  • • Energy-efficient windows
  • • Solar panel installation
  • • Tankless water heaters

Non-Eligible Repairs

Luxury Items

  • • Swimming pools or hot tubs
  • • Tennis courts or sport courts
  • • Outdoor kitchens
  • • Gazebos or decorative structures

Timing Issues

  • • Repairs completed before closing
  • • Work started without approval
  • • Projects exceeding 6-month deadline

DIY & Non-Licensed Work

  • • Owner-performed repairs (most cases)
  • • Unlicensed contractor work
  • • Friends/family labor (no contracts)

Property Type Restrictions

  • • Investment properties (non-owner occupied)
  • • Vacation/second homes
  • • Commercial property portions
  • • Properties > 4 units

Non-Permanent Improvements

  • • Above-ground pools
  • • Portable storage sheds
  • • Removable appliances

Important: Limited 203(k) has additional restrictions - no structural work, foundation repairs, or room additions allowed. Only minor repairs under $35,000.

203(k) Loan Costs & Fees Nevada

Standard Closing Costs

  • • Origination fee (0.5-1%)
  • • Appraisal ($500-$800)
  • • Title & escrow ($1,500-$3,000)
  • • FHA upfront MIP (1.75%)

203(k) Specific Costs

  • • HUD consultant ($400-$800)
  • • Supplemental origination ($350)
  • • Contingency reserve (10-20%)
  • • Plan review fees (varies)

Contractor Costs

  • • General contractor fee (10-20%)
  • • Permits & inspections (varies)
  • • Materials & labor (project cost)
  • • Up to 6 months of mortgage payments during renovation (if uninhabitable)

FHA 203(k) Nevada FAQs

Answers to the most common questions about FHA renovation loans for Nevada homebuyers

Related FHA Resources

Explore more Nevada FHA loan guides, calculators, and tools to help with your home buying journey

Ready to Turn a Fixer-Upper into Your Dream Home?

Get pre-approved for FHA 203(k) financing and start shopping for Nevada fixer-uppers with confidence. Buy below market, renovate smart, build instant equity.

NMLS #65506
Equal Housing Lender
24hr Pre-Approval