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Learn how FHA 203k loans work to buy and fix a home without needing your own money — in my weekly live webinar.

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How the 203(k) “Open Secret” Really Works

The FHA 203(k) is the overlooked solution. It lets you finance the home and the renovations in a single mortgage — so you can create equity from the very start.

Here’s the simple math:

  • $250,000 purchase
  • $50,000 renovation budget
  • After-repair value: $400,000
  • Equity created: $100,000

 

This program has been available for decades, but less than 1% of buyers use it.

 

Move In First, Pay Later

One of the biggest advantages of the FHA 203(k) is that, in many cases, your mortgage payments can be deferred until the renovation work is finished and you’ve moved in.

Here’s how it works:

  • When you close on the loan, the seller is paid and the repair money is set aside in escrow.

  • While the contractors are completing the work, the lender can allow the first few monthly mortgage payments to be added into the loan itself.

  • This means you may not need to make full mortgage payments during the renovation period (usually up to 6 months).

Why this matters:

  • You don’t have to pay for rent and a new mortgage at the same time.

  • You have breathing room while the house is being repaired.

  • By the time you move in, the renovations are finished and your regular payments begin.

📌 Key takeaway: The 203(k) is one of the only loan programs that allows buyers to roll in repair costs and delay payments until the home is ready to live in.

About EJ Glenn

I’ve been a licensed real estate professional since 2014 and over the past decade I’ve built a nationwide referral network focused on helping buyers and homeowners unlock the potential of the FHA 203(k) program.

Because this program is rarely explained clearly, I’ve made it my mission to educate homebuyers and agents about how it works — and how it can instantly create equity when used the right way.

If you’re ready to see how the 203(k) could work for you, start with the free guide and get the facts in plain English.

Licenses Real Estate PA - RS329834 | Mortgage NMLS 1547552

 

Disclaimer

This website and guide are provided for informational and educational purposes only and are not intended as financial, legal, or real estate advice. The FHA 203(k) program is an established mortgage option insured by the Federal Housing Administration (FHA); however, program details, loan limits, qualification requirements, and availability may vary by state, lender, and borrower circumstances.

We are not the FHA, HUD, or a government agency. Nothing on this site should be taken as a commitment to lend or as a guarantee of loan approval, home value, or equity creation. All mortgages must be originated by a licensed lender, and all real estate transactions must comply with state and federal regulations. Homebuyers should consult directly with a licensed mortgage professional and/or real estate agent before making financial decisions.

NMLS licensing and state licensing requirements apply. By requesting more information or downloading resources, you acknowledge that you may be contacted by a licensed mortgage or real estate professional within our referral network to discuss your options.