What Other FHA Loan Options Are Available?

There are numerous other FHA loans on offer, but few of them can be used for renovating your home. That is the entire reason the 203(k) loan and Limited 203(k) loan exist. With that being said, if your home only needs minor repairs, or you’re looking for a way to finance luxury upgrades not allowed with this loan package, then there are other options.


If you own your home, a cash-out refinance could be an option. There is also the Energy Efficient loan program (EEM) may be what you want if you’re interested in improving your home’s energy efficiency with new appliances and fixtures. PACE loans are similar to the EEM program.

If you are considering refinancing your home to take advantage of lower interest rates, a conventional 203(b) loan might be worth considering, although this does not offer any cash for renovations afterward. In this case, it could be worth your time to consider a standard home equity line of credit.

Another option that might be of use to you is the PowerSaver loan program offered by the FHA. The PowerSaver loan is specifically designed for those who are making energy efficient improvements to their homes. This family of loans offers three solutions for homeowners looking to improve their home’s energy efficiency through specific upgrades. Note that there are specific FHA-approved PowerSaver lenders, and the PowerSaver loan can also be rolled into the 203(k) loan. Also, credit score requirements, LTV, and appraisal requirements differ from other FHA loans.

Finally, there are additional Title 1 loans that can allow you to borrow smaller amounts, generally up to $25,000, for use in repairing and renovating a single-family home. However, not all lenders participate in these programs.