Buy a fixer-upper or renovate your current home with a single loan. Arise Above Construction is a Certified 203k Contractor® (accredited by 203kContractors.com) and navigates the full 203(k) process, guiding you from financing to finished project.
The FHA 203(k) Rehabilitation Loan is a government-backed mortgage that lets you finance both the purchase of a home and the cost of renovations in a single loan. This eliminates the need for separate construction financing and simplifies the entire process.
Whether you're buying a property that needs work or want to renovate your current home, a 203(k) loan lets you borrow based on the future value of your home after improvements, giving you access to funds you might not otherwise qualify for.
CURRENT PROGRAM DETAILS · UPDATED 2024–2026
HUD increased the Limited 203(k) cap from $35,000 to $75,000, the first increase in nearly 30 years. The rehabilitation period was also extended from 6 to 9 months, and consultant fees can now be included in your financing.
Up to $75,000 in Repairs
Over $75,000 in Repairs
We understand the unique requirements and documentation 203(k) projects need, ensuring smooth lender approval.
Our itemized bids meet FHA standards and include everything lenders need for quick approval.
We work directly with your lender and HUD consultant to keep your project on track.
203(k) projects have strict deadlines. We complete work within the required timeframes.
Fully licensed Michigan contractor with the comprehensive insurance coverage 203(k) work requires.
5.0★ rated on Google. We stand behind every project we complete.
Work with a 203(k)-approved lender to determine your borrowing power for both purchase and renovation.
Identify a home with potential. We help evaluate properties and provide preliminary renovation estimates.
We build a comprehensive, itemized bid that meets FHA requirements, coordinating with your HUD consultant on Standard loans.
Your lender reviews and approves the renovation plans. At closing, funds are placed in escrow.
We build to the approved plans. Inspections happen at key milestones as funds release in draws.
Final inspections confirm the work meets standards, then you enjoy your renovated home.
Most lenders require a minimum credit score of 580 for an FHA 203(k) loan with a 3.5% down payment. Some lenders may require 620 or higher. If your score is below 580, you may still qualify with a 10% down payment. We can connect you with 203K-approved lenders in Metro Detroit who work with a range of credit profiles.
In addition to standard FHA closing costs, 203K loans include a HUD consultant fee, typically $400 to $1,000 for Standard loans, and an FHA mortgage insurance premium. Since the 2024 HUD update, consultant fees can now be financed directly into the loan, meaning less out-of-pocket at closing.
For Limited 203K projects, most homeowners can stay in the home during work. For major Standard 203K renovations, especially gut rehabs, living on-site is usually not possible. Some lenders will finance up to 6 months of mortgage payments into the loan to cover temporary housing costs while construction is underway.
Renovation funds are held in escrow and released in draws as work is completed and inspected. Limited 203K typically allows two draws. Standard 203K releases funds at milestones approved by the HUD consultant. We schedule work to align with draw releases so the project never stalls waiting on funds.
A 203K loan cannot fund luxury items like pools, outdoor kitchens, or hot tubs. It also cannot cover detached structures, with limited ADU exceptions, work outside the loan timeline, or new construction on vacant lots. All renovations must bring the home to minimum HUD property standards or improve livability and safety.
Yes, and this is one of the most powerful uses of the 203K loan in the Detroit market. Many foreclosures and REO properties are sold in distressed condition that will not qualify for a conventional mortgage. A 203K loan lets you purchase the home and fund the repairs in one transaction. We have done plenty of these in Metro Detroit and know exactly what is required.
A licensed FHA appraiser determines the after-renovation value based on your renovation plans and comparable homes in your area. Your loan amount is based on this future value, not just what the home is worth today. Our estimates are written specifically to meet FHA appraisal and lender requirements.
Any scope changes or cost overruns require a formal change order approved by the lender and HUD consultant before work begins. We build thorough, detailed bids to minimize surprises, and a 10–20% contingency reserve is typically built into the loan for unforeseen conditions.
Have a question we didn't cover? Request a free consultation and we'll walk you through it.
Whether you're buying a fixer-upper or renovating your current home, we'll guide you through the 203(k) process from pre-approval to move-in.