South Carolina purchase and renovation guide

FHA 203(k) Renovation Loans in South Carolina

An FHA 203(k) loan may let you buy or refinance a home and pay for approved repairs with one loan. Limited 203(k) covers smaller jobs that do not change the home’s structure. Standard 203(k) can cover larger jobs and structural work. See HUD’s 203(k) guide.

Submit Your Scenario Compare Limited and Standard

This is general loan information. The lender must approve you, the home and the work. The loan also has FHA rules, costs and limits.

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Use this guide

What do you want to fix?

Check which loan fits the work. Then ask about the builder, costs, steps and time to finish.

01When 203(k) may fit↓02Limited or Standard↓03Eligible work↓04Contractor and draw process↓05Compare alternatives↓06Common questions↓

Buying a home that needs work?

Should the repairs be part of the mortgage?

A 203(k) may help you buy a home you will live in and fix it up. The lender must approve the home, price, work plan and contractor. The appraisal must support the loan.

When a 203(k) may help

The home needs repairs.The loan may cover approved work after closing. Ask which repairs fit the program.
You want one loan for the home and work.The lender checks the price, repairs, home value and FHA loan limit together.
You will live in the home.This is not a loan to buy a rental home you will not live in.
You can follow the work plan.You will need bids, a contractor and a firm schedule. The lender controls how repair funds are paid out.

Other South Carolina loan options

Review standard FHA financing Compare building a new home Compare conventional financing

Two ways to use FHA 203(k)

What is the difference between Limited and Standard 203(k)?

The type of work matters as well as the cost. A job that changes the home’s structure needs Standard 203(k), even if it is small.

Question	Limited 203(k)	Standard 203(k)
Work type	Eligible minor remodeling and nonstructural repairs	Eligible major rehabilitation and structural work
Rehabilitation cost	Up to $75,000 total rehabilitation cost under current HUD policy	Subject to FHA's maximum-mortgage calculation and applicable area limit
Consultant	Not automatically required; may be used	HUD-approved 203(k) consultant required
Completion period	Approved schedule not exceeding nine months	Approved schedule not exceeding 12 months

Checked October 16, 2026: HUD’s 203(k) guide. The cost and time rules are in Mortgagee Letter 2024-13. See also HUD’s June 2026 update on draw requests.

Plan the work first

Which repairs can an FHA 203(k) finance?

Ask which repairs the loan allows before you make an offer. The home, job, bids, permits and schedule must all pass review.

Smaller jobs with no structural changes

Limited 203(k) may cover approved work on the roof, floors, paint, heating or other home systems. It may also cover some access and energy upgrades. The whole job must fit HUD’s rules. Check the eligible work with HUD.

Larger jobs and structural work

Standard 203(k) may cover major repairs, additions or work on the foundation. A HUD-approved 203(k) consultant helps plan and check the work. Check HUD’s consultant rules.

Luxury and leisure items

A project you want may not be allowed. Check each item with the lender before you include it in the loan.

From contract to completed work

How does the builder get paid?

At closing, approved repair money goes into an account called an escrow. The lender releases funds under the loan’s rules as work is done. Each request for funds is called a draw.

Get bids before the appraisal

Give the lender clear bids and any required consultant papers. The appraiser needs to know what the finished home should be like.

Check how much you can borrow

The lender checks FHA’s loan calculation. It includes the home’s value after the work, allowed costs and the county loan limit.

Close the loan and set aside repair funds

The repair funds stay under the loan’s controls. You do not get them as cash to spend as you choose.

Check the work before each payment

For Limited 203(k), HUD allows up to four draw requests per contractor when its rules are met. Standard 203(k) has separate draw and consultant rules. Read HUD’s June 2026 draw update.

Compare your choices

Should you fix up a home, build, or buy one ready to use?

Use the same home budget in each option. Include all work, time, cash left over and the final monthly payment.

Path	Potential strength	Important tradeoff	Next page
FHA 203(k)	Combine eligible FHA financing and renovation	Mortgage insurance and rehabilitation controls	This guide
Standard FHA purchase	FHA purchase without a post-closing renovation escrow	Property must satisfy applicable condition requirements	FHA loans
Construction loan	Build a new home around approved plans	Land, builder, draws, budget, and completion risk	Construction loans
Conventional path	Different mortgage-insurance and property framework	Renovation product availability and terms vary	Conventional loans

Common starting questions

South Carolina FHA 203(k) FAQs

The lender must approve you, the home and the full work plan. Ask which rules apply before you commit.

What is the Limited 203(k) renovation limit?

Limited 203(k) allows up to $75,000 in total repair costs under HUD’s rules. The work must still be allowed. It cannot include structural work. See HUD’s Limited 203(k) cost rules.

When is a 203(k) consultant required?

Standard 203(k) requires a HUD-approved 203(k) consultant. Limited 203(k) does not always require one, but you may use one. See HUD’s consultant rules.

Can an FHA 203(k) finance structural work?

Yes, if the work fits Standard 203(k). Limited 203(k) does not allow structural work. The lender must approve the plan and use the required consultant and work checks. Read about the two 203(k) types.

Can I use 203(k) for a South Carolina rental property?

You must generally plan to live in the home. This is not a loan to buy a rental home you will not live in. Check HUD’s home-use rules.

Does the contractor receive all renovation money at closing?

No. The funds stay in a controlled escrow account. The contractor gets approved payments as the loan’s work and draw rules are met.

How long can the renovation take?

HUD allows an approved work period of up to nine months for Limited 203(k), or 12 months for Standard 203(k). Your contract and lender-approved schedule still apply. Check HUD’s time limits.

Found a home that needs work?

Talk with us before you make the offer

Tell us about the home and work you want to do. Share the price, bids, budget and move date. We can help you find out what must be checked before you rely on this loan.

Submit Your Scenario Call (843) 524-2404 Text (843) 441-0668

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