Buy and Renovate Your Home

FHA Limited 203(k) Loan

The Maryland Mortgage Program (MMP) offers the FHA (Federal Housing Administration) 203(k) loan. This loan lets you buy a home that needs minor repairs and include the cost of those improvements in one mortgage. A 203(k) option is available for each FHA loan type.

Who Can Apply

First-time homebuyer
Repeat homebuyers using an MMP Flex loan who do not own another home at the time of closing

Benefits

One single loan to buy and renovate your home
Up to $75,000 for eligible repairs (for FHA Case Numbers assigned on or after 11/4/2024 only)
Modernize your home and increase its value

Eligibility Requirements

To use this loan, you must:

Use an MMP 1st Time Advantage loan or MMP Flex loan
Complete an approved Homebuyer Education class
Meet standard MMP eligibility requirements, including income limits, credit score and purchase price limits
Not own any other residential property at the time of closing
Work with a lender approved to offer 203(k) loans
Meet FHA and U.S. Bank requirements

U.S. Bank requires a minimum FICO score of 660 for this product (as of February 2026)
Note to lenders: Please verify all U.S. Bank overlays at the time of loan reservation, as requirements may change

Property and repair requirements:

The home must be your primary residence
Manufactured homes, condominiums, and attached Planned Unit Development (PUD) are not eligible
Repairs must be non-structural and limited to minor improvements

Approved MMP FHA Limited 203(k) Lenders

Financing for this loan is available only through lenders that have been approved by U.S. Bank to process 203(k) loans. These lenders can help you confirm your eligibility and ensure you meet all applicable requirements.