203(k) Limited
Up to $35,000 in repairs
Non-structural work only — kitchens, baths, HVAC, flooring, paint, windows, doors. No wall moves, no foundation work.
Best for: Dated-but-sound rowhome that needs cosmetic + mechanical updates.
203(k) Renovation Loans · Baltimore
FHA 203(k) Contractor in Baltimore.
Buy the fixer-upper. Finance the renovation in the same closing. One licensed contractor, one lender-ready bid package, one draw schedule that holds.
MHIC #149066 Fully insured 40 Google reviews 203(k) experienced
What Is a 203(k) Loan
One loan. One closing. Buy it and fix it.
An FHA 203(k) is a mortgage that wraps the purchase price and the renovation budget into a single loan. You close on the house once, the lender holds your renovation funds in escrow, and they release draws as the contractor completes inspection milestones. No bridge loan, no second closing, no construction-loan interest rate.
Baltimore is one of the best markets in the country for 203(k) loans. The row house stock is largely pre-1950 — good bones, low purchase prices relative to renovation potential, and a lot of dated kitchens, baths, and mechanical systems that lenders flag as conditions. The loan is built for exactly this situation: buy the $200K shell, put $100K of renovation into the mortgage, and close in one transaction.
The catch is the contractor. The lender needs a detailed, line-itemed bid that matches the 203(k) draw format, and the contractor needs to hit inspection milestones on schedule or your draws stall. We've run this play enough times to know what lenders need and what the HUD-approved consultants look for. For the full process breakdown, see our 203(k) contractor process page.
Two Loan Tracks
Limited or Standard — pick the right scope.
203(k) Standard
$35,001 and up
Structural work allowed — full gut, additions, foundation work, wall removals, major system overhauls. Requires a HUD-approved 203(k) Consultant.
Best for: Gut rehab, whole-home rebuild, or anything involving load-bearing walls or major scope.
Most Baltimore rowhome gut rehabs require the Standard because the scope exceeds $35K and often involves structural or mechanical work. A kitchen-and-bath-only refresh on a livable house may qualify for the Limited. We'll tell you which track fits your scope on the first call.
Common Scope Items
What typically goes into a Baltimore 203(k).
- Kitchen remodels
Cabinets, counters, flooring, plumbing, electrical, drywall, paint. The full $19K–$35K mid-level remodel can roll into the loan. - Bathroom remodels
Gut to studs, tile, vanity, fixtures, waterproofing. Full bath runs $15K–$19K at MBR's standard finish level. - Plumbing + electrical
Replacing galvanized supply lines, upgrading knob-and-tube, panel to 200A — the stuff inside Baltimore walls that lenders often require be updated. - HVAC
Full system replacement, ductwork, smart thermostat. Required on most gut rehabs and lender-flagged on older mechanical systems. - Roofing + siding
Shingle replacement, soffit/fascia, gutters. Common on row houses and older Baltimore county colonials. - Full gut rehabs
Down to studs, back to finished. MBR runs $80K–$300K depending on size and finish. The Standard 203(k) is built for this scope.
Baltimore Rowhome Reality
Why Baltimore housing stock and 203(k) loans are a natural fit.
The housing stock
Most Baltimore City row houses were built between 1900 and 1950. They're structurally sound — brick, solid-sawn floor joists, good party-wall construction — but they run on systems that are 60 to 100 years old. Knob-and-tube wiring, galvanized supply lines that are 70% closed inside, original cast-iron drain stacks, uninsulated exterior walls. FHA appraisers flag these. A 203(k) loan is designed to fix them.
What this means in practice: if you're buying a Baltimore rowhome and the appraiser notes electrical, plumbing, or structural conditions, a 203(k) lets you roll those repairs into the mortgage. You're not scrambling for cash after close — you budget it upfront and pay it back over the mortgage term.
What the contractor needs to do
The lender requires a line-itemed scope of work and cost estimate before close. The format has to match what the HUD-approved 203(k) Consultant expects — broken out by trade, tied to the draw schedule, with realistic completion timelines. We've delivered this package to dozens of Baltimore-area lenders and consultants. We know how it needs to be formatted and what a bank underwriter looks for.
We also know what Baltimore's permit offices require. Gut rehabs in Baltimore City run through the Department of Housing and Community Development permits. Baltimore County work goes through the Department of Permits, Approvals and Inspections. Both have their own inspection sequence and code requirements. Keeping the permit on track is what keeps the draws on track.
What it costs
A Limited 203(k) scope — kitchen, bath, HVAC, paint and flooring — typically runs $25K–$45K in Baltimore. A Standard gut rehab on a Baltimore City rowhome runs $80K–$150K for an investor-finish scope, or $130K–$200K for owner-occupant mid-grade. For the full tier-by-tier breakdown, read the 2026 full rehab cost guide. We quote a fixed price after walking the property — the number that goes to the lender is the number that pays out of escrow.
203(k) Questions
Answered before you call the lender.
What is an FHA 203(k) loan?
A 203(k) is an FHA-backed mortgage that combines the purchase price and renovation costs into one loan. You close on the house and the renovation at the same time — no separate construction loan, no bridge financing. The lender holds the renovation funds in escrow and releases them as the work is completed.
Do I need a special contractor for a 203(k) loan?
Yes and no. The FHA doesn't require a specific contractor, but lenders do require a licensed contractor who can provide a detailed, line-itemed bid and follow a draw schedule. In practice, contractors without 203(k) experience often miss the bid format, miss inspection milestones, and delay your draws. We've run enough 203(k) jobs to know what lenders need and how to deliver it.
What is the 203(k) draw schedule?
For a 203(k) Standard, the lender typically sets up 5 draws tied to inspection milestones — usually after demo, after rough mechanicals, after drywall, after finish, and at final. The lender's representative inspects the work before each draw releases. We hit those milestones on schedule because we plan the build backward from the draw dates.
How long does a 203(k) renovation take in Baltimore?
A Limited (up to $35K in repairs) closes the loan and construction within about 3 months. A Standard allows up to 6 months. Most gut rehabs at MBR finish in 4–10 weeks once we start, so the 6-month window is comfortable. The pre-close underwriting is where most time is lost — lender review of the scope, appraisal, HUD consultant sign-off. We help tighten that with a fast, clean bid package.
What are the Baltimore-specific things to know about a 203(k)?
Baltimore rowhomes built before 1950 almost always have at least one flagged system: knob-and-tube or two-wire electrical, galvanized supply lines, or original cast-iron drain stacks. FHA appraisers frequently require these to be addressed as loan conditions. We scope them honestly on the first walk and include the cost in the bid — no surprises at the inspection table.
Can I use a 203(k) in Baltimore County or Anne Arundel County?
Yes. The 203(k) program applies to all FHA-eligible properties in the Baltimore metro, including Baltimore County, Anne Arundel County, and Howard County. We pull permits with Baltimore County's Department of Permits, Approvals and Inspections (PAI), Anne Arundel County's Department of Inspections and Permits, or Howard County's DILP — depending on where the property is. Same process, different permit office.
How much does a 203(k) renovation cost in Baltimore?
It depends entirely on scope. A Limited job (kitchen + bath + HVAC) typically runs $25K–$45K in Baltimore. A Standard gut rehab on a Baltimore City rowhome runs $80K–$150K. Suburban county homes vary — many have more square footage and easier access, but the systems are often just as dated. We write a fixed-price bid after walking the property, which is also the lender-ready package.
★★★★★ 4.6 on Google · 40 reviews
What Baltimore homeowners say
★★★★★
Steve and his team did a great job on my kitchen remodel. Sergio and Frank were respectful and did clean, quality work. From the demo phase to installing cabinets, granite and plumbing, the process went smoothly. The kitchen looks great and I will be going back to these guys for more work in the future!
★★★★★
Monarch Bay did an incredible job with the complete renovation of our master suite bathroom. All the old fixtures, cabinets, tub, shower, toilet, walls and flooring were removed and an extraordinary new bathroom resulted. We told them what we wanted and the team delivered. Our bathroom is stunning. We highly recommend Monarch Bay Renovations.
★★★★★
Steven and his team completed a 3-level renovation of my newly purchased home. They took the time to ensure my vision was possible and within budget while keeping quality. Even after construction was completed they were just as attentive, answering any questions I had. I would choose Monarch Bay for any of my future renovation needs.
Have a property in mind?
We walk the house with you, write the lender-ready bid, and run the job. Free walkthrough — lender-ready package within 5 business days.