FHA 203K Renovation Loan
Buy. Renovate. Let the Rent
Pay Your Mortgage.
I helped a Brooklyn buyer use the FHA 203K loan to purchase and fully renovate a multi-family property — and structure it so the rental income covers the entire mortgage. He lives in one unit. Rent-free.
Let's Talk 203KThe Loan Explained
What Is the FHA 203K Loan?
The FHA 203K renovation loan is a government-backed mortgage that combines the purchase price of a home and the cost of renovations into a single loan. You don't need to save separately for repairs — the work is financed upfront and completed after closing.
Lenders underwrite the loan based on the home's after-renovation value — meaning you can borrow more than the current appraised price.
For multi-family properties (2–4 units), this creates an extraordinary opportunity: buy a distressed building, renovate it, and use the rental income from the other units to cover your monthly mortgage payment.
Real Deal · Brooklyn
How I Made It Work for My Client
A real Brooklyn transaction: a buyer with a vision, a distressed multi-family, and a financing strategy that changed his financial life.
Found the Right Property
We identified a multi-family property in Brooklyn priced below market because it needed significant renovation — exactly the kind of deal 203K is built for.
Bundled Purchase + Renovation
We rolled the purchase price and full renovation costs into a single mortgage. My client put down just 3.5% and the lender funded all the work.
Structured the Rent to Cover the Mortgage
After renovation, rental income from the other units meets the total monthly mortgage payment — my client lives in his unit at zero personal cost.
The Outcome
He owns a fully renovated Brooklyn multi-family. The rents cover his mortgage. He lives in his own apartment — paying nothing out of pocket.
Is This for You?
The 203K Is a Fit If…
You Want to House Hack
Live in one unit and let tenants pay your mortgage. Build equity without a housing expense.
You're Open to a Fixer
Distressed properties are priced lower. The 203K turns what others overlook into your best opportunity.
You Have Limited Cash
Only 3.5% down on the combined purchase + renovation cost. No separate renovation budget needed.
You Want Instant Equity
Buy below market, renovate to full value. You may have six figures in equity on day one after completion.
You're Buying in Brooklyn
Multi-family properties here command strong rents. The numbers often work in your favor.
You Want a Free Place to Live
Like my client — own your building, live in your unit, and have the rent cover every dollar of your mortgage.
Step by Step
How a 203K Deal Comes Together
- 1
Get Pre-Approved for 203K
Not all lenders offer this product. I connect my clients with the right lenders who specialize in 203K financing.
- 2
Find the Right Property
We target multi-family properties that need work — where others see problems, we see potential.
- 3
Get a Renovation Estimate
A HUD-approved consultant scopes the work and provides a detailed bid used by the lender.
- 4
Close on the Purchase
You close on the property. Renovation funds are held in escrow and released to the contractor in draws.
- 5
Renovate
Work begins. Timelines typically run 3–6 months for a full renovation. You don't move in yet.
- 6
Move In & Rent Out
Once complete, you move in, list the other units, and start collecting rent. The mortgage is covered.
Ready to Make Your Move?
Let Me Show You How to Make the Rent Pay Your Mortgage Too
I've done this for my clients in Brooklyn. I know the lenders, the neighborhoods, and the numbers. Let's find your deal.
Get in Touch