Aging in Place Grants

FHA 203(k) Loans for Accessibility Renovations

Updated October 18, 2026 · By the Aging in Place Grants research desk · How we research

An FHA 203(k) mortgage lets you buy or refinance a home and include the cost of renovations, including accessibility work, in one loan.

At a glance

Key amounts (check the source for the current figure)
Limited 203(k) maximum repair cost$75,000
Standard 203(k) minimum repair cost$5,000 (no set maximum)
Time allowed to finish work12 months (Standard), 9 months (Limited)
2026 FHA one-unit loan limit range$541,287 (floor) to $1,249,125 (ceiling)

What it can pay for

  • Changes that create accessibility for persons with disabilities
  • Kitchen and bathroom remodeling
  • Additions, such as a first-floor bedroom or bathroom (Standard 203(k))
  • Plumbing, heating, cooling and electrical work
  • Flooring and window replacement
  • Eligible accessory dwelling units (ADUs), for example for a parent or caregiver

Who qualifies

  • Buyers or current owners who will live in the home and can qualify for an FHA-insured mortgage
  • Eligible properties include 1-4 unit homes, townhomes, eligible condos (interior work only), certain manufactured homes and some mixed-use properties
  • Standard 203(k) needs at least $5,000 in repairs; Limited 203(k) has no minimum
  • The total loan must fit within FHA loan limits for your county

How to apply

  1. Decide what work you need and whether any of it is structural, which points to the Standard 203(k).
  2. Find an FHA-approved lender that does 203(k) loans using HUD's lender search (check the 203(k) box).
  3. Talk to a HUD-approved housing counselor (hud.gov/findacounselor or 800-569-4287) if you have questions.
  4. For a Standard 203(k), hire an FHA-approved 203(k) consultant to inspect the home and write up the work.
  5. Get contractor bids and give them to the lender. The loan is based on the home's value after the work is done.
  6. Get all permits before work starts and post them on site.

Watch out for

  • A 203(k) is a mortgage, not a grant. You will make monthly payments.
  • Standard 203(k) requires an FHA-approved consultant, which adds a fee.
  • Work must be finished within the time limit (12 months Standard, 9 months Limited) unless you get an extension.
  • Lenders may require a contingency reserve of up to 20% for surprises.
  • Refinancing an existing low-rate mortgage into a new rate can raise your payment. Do the math first.

A mortgage that includes the renovation

Most home loans pay for a house as it is. An FHA 203(k) loan is different. It lets you roll the cost of renovations into a mortgage, whether you are buying a home or refinancing one you already own 1.

For families planning for aging in place, that opens two paths:

  • Buying a home that suits a parent or older couple, and fixing it up for accessibility right away
  • Refinancing the current home and using the new loan to pay for changes

HUD lists "create accessibility for persons with disabilities" among eligible 203(k) work 1.

Two versions: Standard and Limited

Limited 203(k)

The Limited version is for non-structural work, such as minor remodeling 1. Key points 2:

  • Total rehab cost can be up to $75,000
  • No minimum repair amount
  • No structural work
  • Work must be finished within nine months
  • A 203(k) consultant is optional 1

HUD raised the Limited 203(k) cap from $35,000 to $75,000 for FHA case numbers assigned on or after November 4, 2024, and said it would review the cap each year 3. Ask your lender to confirm the current figure.

Standard 203(k)

The Standard version is for major or structural work, such as additions 1. Key points 2:

  • Repairs must total at least $5,000
  • No set maximum for repairs (the overall loan must still fit FHA limits)
  • Structural work is allowed
  • Work must be finished within 12 months
  • An FHA-approved 203(k) consultant is required

What it can pay for

HUD's list of eligible improvements includes 1:

  • Accessibility for persons with disabilities
  • Kitchen and bathroom remodeling
  • Additions and finished attics or basements
  • Plumbing, heating, cooling and electrical work
  • Roofing, siding and gutters
  • Window and flooring replacement
  • Energy-efficient upgrades
  • Eligible accessory dwelling units (ADUs)

For aging in place, that could mean a curbless shower, wider doorways, a first-floor primary suite, or a small separate unit for a parent or caregiver, if local zoning allows.

Loan limits

The total 203(k) loan must fit within FHA's limit for your county. For 2026, FHA's one-unit limits range from $541,287 in lower-cost areas to $1,249,125 in high-cost areas 4. Your lender can tell you the limit where you live.

How the process works

  1. Find a lender. Use HUD's lender search and check the 203(k) box 1.
  2. Get advice if needed. A HUD-approved housing counselor can help. Visit hud.gov/findacounselor or call (800) 569-4287 1.
  3. Plan the work. For a Standard 203(k), a consultant inspects the home and writes up the work.
  4. Get bids. Lenders base the loan on the home's value after the improvements 1.
  5. Get permits. Get all permits before work starts and post them at the home 1.
  6. Close and build. Funds are released to pay for the work as it is done.

HUD's program comparison also lists a contingency reserve of up to 20 percent for the 203(k) program 2. This covers surprises found once walls are opened.

Is a 203(k) the right tool?

It may fit if:

  • You are buying a home that needs accessibility work
  • You need a large project, like an addition
  • You can comfortably afford a monthly mortgage payment

It may not fit if:

  • You already have a low mortgage rate you would lose by refinancing
  • You are on a tight fixed income and do not want a monthly payment
  • You only need small items like grab bars, which grants or nonprofits may cover

Homeowners 62 and older who do not want a monthly payment may compare a reverse mortgage (HECM). Lower-income homeowners should check grants first, like USDA Section 504 in rural areas, local CDBG or HOME repair programs, and VA grants for Veterans.

Questions to ask a 203(k) lender

  • Do you offer both Standard and Limited 203(k) loans?
  • What is the current Limited 203(k) maximum?
  • What credit score and debt-to-income ratio do you require?
  • How are payments to the contractor released, and how many draws are allowed?
  • Will I need to make mortgage payments while the work is under way?
  • What happens if the work costs more than planned?
  • Can accessibility work for a parent who will live with us be included?

An example of how families use it

Picture a couple in their late 50s buying a ranch-style home so a widowed parent can move in. The house has a narrow hall bath and a step at the back door. With a 203(k), they could include a curbless shower, wider doors, grab bar blocking in the walls, and a gentle ramp in the purchase loan. That avoids paying for the house first and then hunting for a second loan for the work.

Tips

  • Ask lenders how many 203(k) loans they close each year. Experience matters.
  • Choose contractors who are licensed and insured, and who have worked with 203(k) loans before.
  • Ask an occupational therapist or certified aging-in-place specialist to review plans before they are final, so the design actually works for the person who will live there.

Common questions

Can I use a 203(k) loan to make a home wheelchair accessible?

Yes. HUD lists creating accessibility for persons with disabilities as eligible 203(k) work.

How much can I borrow for repairs with a Limited 203(k)?

Up to $75,000 in total rehab costs under HUD's current rules, which took effect for case numbers assigned on or after November 4, 2024. HUD said it would review this maximum each year.

Can I use a 203(k) on a home I already own?

Yes. Homeowners can refinance an existing mortgage and include renovation costs in one loan.

Do I need a 203(k) consultant?

A consultant is required for the Standard 203(k) and optional for the Limited 203(k).

Can I build a unit for my aging parent?

HUD lists eligible accessory dwelling units as 203(k) work. Ask a lender whether your property and local zoning allow one.

Sources

  1. Buying a House That Needs Rehabilitation or Renovating Your Home? (203(k) consumer fact sheet) — U.S. Department of Housing and Urban Development. Checked October 18, 2026.
  2. 203(k) Program Comparison Fact Sheet — U.S. Department of Housing and Urban Development. Checked October 18, 2026.
  3. FHA Announces Updates to its 203(k) Rehabilitation Mortgage Insurance Program (FHA INFO 2024-44) — U.S. Department of Housing and Urban Development. Checked October 18, 2026.
  4. HUD's Federal Housing Administration Announces 2026 Loan Limits (HUD No. 25-145) — U.S. Department of Housing and Urban Development. Checked October 18, 2026.