Renovation Loans on Florida's Space Coast: FHA 203(k) and HomeStyle

Can you finance repairs into a mortgage on the Space Coast?

Yes. FHA 203(k) and Fannie Mae HomeStyle Renovation loans let Brevard County buyers roll repair costs into the purchase mortgage, with the Limited 203(k) capped at $75,000 in rehabilitation costs.

Some of the best-located houses on the Space Coast are the ones nobody wants to walk through twice. A 1978 block ranch two blocks off the river in Merritt Island with orange laminate counters. A Rockledge three-bedroom with a kitchen that has not been touched since the shuttle program. Buyers see the carpet, do the math on a contractor, and move on.

The math is usually wrong. Most people assume they need the purchase money and then a separate pile of cash for renovations. There is a third option that has been sitting in the federal loan programs for decades, and almost nobody in Brevard County uses it: financing the repairs into the mortgage itself, based on what the home will be worth after the work is done.

What is an FHA 203(k) loan?

The 203(k) is FHA's rehabilitation mortgage. You buy the house and fund the repairs with one loan, one closing, and one monthly payment. The loan is underwritten against the "as-completed" value of the property, not the beat-up condition it is in on the day you tour it.

HUD runs two versions, and the difference matters more than most Space Coast buyers realize.

	Limited 203(k)	Standard 203(k)
Maximum rehab cost	$75,000	No separate cap (total loan must stay under the county FHA limit)
Minimum rehab cost	None	$5,000
Structural work	Not allowed	Allowed
HUD-approved consultant	Optional	Required
Typical use	Kitchen, bath, flooring, paint, roof	Additions, moving walls, major systems

The $75,000 Limited 203(k) figure is newer than a lot of agents realize. FHA raised it from $35,000 in 2024, which changed what is possible on a Brevard County purchase. Seventy-five thousand dollars covers a full kitchen, two bathrooms, flooring throughout, and paint on most Space Coast houses in the 1,400 to 2,000 square foot range. You can read HUD's own breakdown of both program types on the 203(k) Rehabilitation Mortgage Insurance Program page.

How much can you borrow in Brevard County?

The 203(k) is still an FHA loan, so the total mortgage has to fit inside the county loan limit. Brevard County sits at FHA's national floor for 2026, published in HUD Mortgagee Letter 2025-23:

• One unit: $541,287
• Two units: $693,050
• Three units: $837,700
• Four units: $1,041,125

That one-unit number is the ceiling on purchase price plus renovation combined. On a Merritt Island or Rockledge house, that is usually plenty of room. On a beachside Satellite Beach or Indialantic property, it gets tight fast. If you want the full picture on those limits, I broke them down in FHA loan limits in Brevard County for 2026.

What about HomeStyle Renovation?

Fannie Mae's HomeStyle Renovation is the conventional answer to the same problem, and it is more flexible in several ways that matter on the Space Coast.

There is no minimum dollar amount for the work. Maximum loan-to-value runs up to 97%. For purchase transactions, Fannie Mae caps the financing at 75% of either the purchase price plus renovation costs or the as-completed appraised value, whichever is lower. Landscaping counts. So do accessory dwelling units, which is worth knowing if you are looking at a Melbourne or Suntree property with room for an in-law suite.

Two HomeStyle details surprise almost everyone. First, the house does not have to be habitable at closing. If it is not, you can finance up to six months of principal, interest, taxes, and insurance while the work happens. Second, on a one-unit property you are allowed to do the work yourself, capped at 10% of the as-completed value, with the lender inspecting anything over $5,000. Fannie Mae lays out the eligibility rules on its HomeStyle Renovation product page.

Which one fits a Space Coast purchase?

A rough sorting rule, based on how these actually play out in Brevard County:

• Cosmetic work under $75,000, smaller down payment. Limited 203(k). Kitchen, baths, floors, paint, roof replacement on a 1980s Melbourne or Rockledge house.
• Structural work or an addition. Standard 203(k) or HomeStyle. Moving walls, adding square footage, raising a ceiling.
• Stronger credit, want to avoid FHA mortgage insurance. HomeStyle.
• Adding an in-law suite or detached unit. HomeStyle, since accessory dwelling units are explicitly eligible.
• Property is uninhabitable. HomeStyle, because of the six-month payment financing.

What slows these loans down on the Space Coast?

Renovation loans take longer than a standard purchase, and the delay is almost never the lender. It is the contractor.

Every one of these programs requires a written scope of work and bids before the loan can be underwritten. Getting a licensed Brevard County contractor to walk a house and produce a real bid inside a 30-day inspection period is the actual bottleneck. Line up your contractor before you write the offer, not after.

The second issue is permitting. Contractors have to pull permits before the work starts, and structural work in Brevard County means plan review. Build that into your timeline. It is also worth pulling the property's permit history on the county appraiser's site before you commit, which I walk through in how to look up a home's records on BCPAO.

Frequently Asked Questions

Can I use a 203(k) loan on a Space Coast condo?

Limited 203(k) can be used on condos, but the work has to be confined to the interior of the unit, and the project itself has to be FHA-approved. That rules out most older Cocoa Beach and Satellite Beach buildings. For a condo, the practical questions are usually the association's reserves and any pending assessments, not the renovation loan.

Does a renovation loan cover a new roof in Brevard County?

Yes. Roof replacement is eligible under both Limited 203(k) and HomeStyle. On the Space Coast this is one of the most common uses, because roof age drives homeowners insurance more than almost any other single factor, and a house with a 20-year-old roof is often priced accordingly.

Are renovation loan rates higher?

Usually somewhat, because the lender is servicing draws and escrow through the project. Fannie Mae notes that HomeStyle rates are typically lower than HELOCs or personal loans, which is the more relevant comparison. The alternative is not a clean conventional mortgage, it is a mortgage plus a second loan for the work.

Thinking about a Space Coast fixer-upper?

The houses that sit longest in Brevard County are almost always dated, not defective. If you can see past the finishes, a renovation loan turns a house nobody else wants into the one you actually want, in a location that was never going to come cheap otherwise. I am happy to walk a property with you and give you an honest read on whether the numbers work before you spend money on inspections.

My partner Nichole and I got your back. Reach out anytime at (321) 212-7676 or www.livingspacecoast.com.