In most Philadelphia neighborhoods, the renovated rowhome sells to the buyer with the most cash, and the dated one often sells to an investor. A renovation loan lets a first-time buyer compete for it with the same small down payment as a regular FHA loan.
- 3.5% down with an FHA 203k, or 3% with an eligible HomeStyle purchase.
- Gift funds from family can cover the down payment.
- The loan is based on the as-completed value, so you can start with equity you didn't have to save.
- Pick the right first project. A solid rowhome with cosmetic and systems work is a better first renovation than a gut.
Neighborhoods like Mayfair, Port Richmond, Southwest Philly, Olney, and Upper Darby offer prices that leave plenty of room under the $630,200 FHA limit. Browse all areas.