FHA 203(k) Loans in Colorado: Limited and Standard Rehab

FHA 203(k): buy a fixer-upper with 3.5% down

An FHA loan that adds the cost of repairs to your mortgage. The Limited version handles cosmetic and mechanical work; the Standard version handles structural projects.

How it works

Find the home and get bids. Contractors give itemized bids. For a Standard 203(k), a HUD consultant writes up the work.
Appraisal on the finished home. The loan is sized to the after-improved value.
One closing. The purchase and repairs are in a single FHA loan.
Draws. Contractors are paid as work is inspected and completed.

Projects that fit this loan

New roof, windows, furnace, water heater or electrical
Kitchen and bath remodels, flooring and paint
Accessibility changes
Structural repairs and additions (Standard only)

In Southwest Colorado, many affordable homes in Cortez, Dolores and Mancos need a roof, a furnace or updated systems before they pass a standard appraisal. 203(k) makes those homes available to buyers with a small down payment.

Choose FHA and enter the price plus the repairs as the home price to see the full monthly payment, mortgage insurance included.

Mortgage payment calculator. Turn on JavaScript to change the numbers.

Monthly payment$2,185

Conventional, 30-year fixed: principal and interest, taxes and insurance, and mortgage insurance.

Where each payment goes

See any paymentPayment 1 · year 1

First paymentYear 30

Interest	$1,603.13
Principal	$245.38
Taxes and insurance	$241.67
Mortgage insurance	$95.00
Payment 1	$2,185.18

In payment 1, $1,603 goes to interest and $245 to principal. From year 20, more goes to principal than to interest. To see what paying extra saves, try the extra payment planner.

Loan and mortgage insurance

Loan amount$285,00095% of the price

Mortgage insurance$95a month. Ends after about 11 years, 7 months

Interest over the loan$380,46230 years of payments

Balance over time

The loan is paid off in 30 years, with total interest of $380,462.

Cash to close, estimated

Down payment	$15,000
Lender and title fees	$3,662
Prepaids and escrow	$2,727
Estimated cash to close	$21,389

Fees and prepaids use typical Southwest Colorado figures. Your Loan Estimate will have the exact amounts.

Year-by-year schedule

Year	Principal	Interest	Balance
1	$3,037	$19,145	$281,963
2	$3,249	$18,933	$278,714
3	$3,475	$18,707	$275,239
4	$3,717	$18,465	$271,522
5	$3,976	$18,206	$267,546
6	$4,253	$17,929	$263,293
7	$4,549	$17,633	$258,744
8	$4,866	$17,317	$253,879
9	$5,204	$16,978	$248,674
10	$5,567	$16,615	$243,108
11	$5,954	$16,228	$237,154
12	$6,369	$15,813	$230,785
13	$6,812	$15,370	$223,972
14	$7,287	$14,895	$216,686
15	$7,794	$14,388	$208,892
16	$8,337	$13,845	$200,555
17	$8,917	$13,265	$191,638
18	$9,538	$12,644	$182,100
19	$10,202	$11,980	$171,898
20	$10,912	$11,270	$160,986
21	$11,672	$10,510	$149,314
22	$12,485	$9,697	$136,829
23	$13,354	$8,828	$123,474
24	$14,284	$7,898	$109,190
25	$15,279	$6,903	$93,912
26	$16,342	$5,840	$77,569
27	$17,480	$4,702	$60,089
28	$18,697	$3,485	$41,391
29	$19,999	$2,183	$21,392
30	$21,392	$790	$0

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Calculators and guides

Common questions

Limited or Standard 203(k)?

Limited is for projects up to $75,000 that do not involve structural work, such as a kitchen, roof, windows or furnace. Standard is for structural work, additions or larger budgets.

How are contractors paid?

Through draws as work is completed. Since June 2026, Limited 203(k) loans allow up to four draws per contractor.

Can I live in the home during repairs?

Often, yes. With a Standard 203(k), if you cannot live there, up to several months of mortgage payments can be financed while the work is done.

203(k) or HomeStyle?

203(k) is more forgiving on credit. HomeStyle allows luxury items, second homes and rentals, and its mortgage insurance can be canceled.

Sources

See this loan next to your other options

Your Mortgage Plan shows the FHA loan on the price plus the repairs beside your other options, with your numbers: payment, cash to close, mortgage insurance and cost over time. Daniel lays out the renovation side, meaning the bids, the draws and the contingency reserve, with you and your contractor.