Buy a fixer-upper or renovate your current home with a single loan. Arise Above Construction is your experienced 203(k) contractor, guiding you from financing to finished project.
The FHA 203(k) Rehabilitation Loan is a government-backed mortgage that allows you to 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.
We understand the unique requirements and documentation needed for 203(k) projects, 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 required timeframes.
Fully licensed Michigan contractor with comprehensive insurance coverage required for 203(k) work.
5-star rated with 42 Google reviews. We stand behind every project we complete.
Work with a 203(k)-approved lender to determine your borrowing power. They'll explain your options and help you understand what you can afford for both purchase and renovation.
Identify a home with potential. We can help you evaluate properties and provide preliminary renovation estimates to ensure the numbers work for your budget.
We create a comprehensive, itemized bid that meets FHA requirements. For Standard 203(k) loans, we work with your HUD consultant to develop the work write-up.
Your lender reviews and approves the renovation plans. At closing, renovation funds are placed in escrow to be released as work is completed.
We start the renovation according to the approved plans. Inspections are conducted at key milestones, and funds are released in draws as work progresses.
Upon completion, final inspections ensure all work meets standards. Once approved, you can enjoy your beautifully renovated home.
Whether you're buying a fixer-upper or renovating your current home, we're here to guide you through the 203(k) process. Contact us for a free consultation and renovation estimate.
Everything Detroit homeowners ask before starting a 203K renovation
An FHA 203(k) 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. You borrow based on the future value of the home after improvements.
Most 203K projects take 3 to 9 months from loan closing to completion. The timeline depends on the scope of work. The loan typically requires all work to be completed within 9 months.
For a Standard 203K loan (over $75,000 in renovations), a HUD-approved consultant is required. For the Limited 203K (up to $75,000), a consultant is not required but recommended.
Yes. The FHA 203(k) refinance option allows existing homeowners to roll renovation costs into a new mortgage based on the home's improved value.
Your lender and HUD consultant will need to approve your contractor. Arise Above Construction is experienced with the 203K process, including draw schedules, HUD inspections, and the required documentation.
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–$1,000 for Standard loans) and an FHA mortgage insurance premium (MIP). Since the 2024 HUD update, consultant fees can now be financed directly into the loan — meaning less out-of-pocket at closing.
The Limited 203K covers non-structural renovations up to $75,000 and does not require a HUD consultant. The Standard 203K is for projects over $75,000 or any structural work. It requires a HUD consultant but allows major renovations including room additions, foundation repairs, and full gut rehabs. We handle both types.
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 won’t qualify for a conventional mortgage. A 203K loan lets you purchase the home and fund the repairs in one transaction. We’ve done plenty of these in Metro Detroit and know exactly what’s required.
A licensed FHA appraiser determines the after-renovation value (ARV) 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. Arise Above builds thorough, detailed bids to minimize surprises — and a 10–20% contingency reserve is typically built into the loan for unforeseen conditions.
Start by getting pre-approved with a 203K-approved lender to understand your borrowing power. Then find a property, bring in a 203K-experienced contractor for the renovation bid, and — for Standard loans — a HUD consultant for the work write-up. Call us at (248) 717-1417 or request a free consultation and we’ll walk you through every step.