What is an FHA 203(k) loan?

An FHA 203(k) loan lets you finance the purchase (or refinance) of a home and the cost of renovating it in a single mortgage with one monthly payment. It is ideal for buying a fixer-upper or updating a home that needs work.

What is the difference between a Limited and a Standard 203(k) loan?

A Limited 203(k) covers non-structural repairs and improvements up to $75,000 with no minimum and no required HUD consultant. A Standard 203(k) is for major or structural work, requires at least $5,000 in repairs, and uses a HUD-approved 203(k) consultant to oversee the project.

Do I have to live in the home to use a 203(k) loan?

Yes. The FHA 203(k) program is for owner-occupants who will use the property as their primary residence. Eligible properties include 1–4 unit homes, qualifying condos, and primarily residential mixed-use properties. Investors can explore the Fannie Mae HomeStyle renovation loan instead.

Can I do the renovation work myself?

No. FHA 203(k) repairs must be completed by a licensed contractor, not the borrower. That is where a 203(k)-experienced contractor like Matrix Company Solutions handles design, permits, budgeting, and construction.

What credit score and down payment do I need for a 203(k) loan?

Many lenders look for a credit score of 580 or higher to qualify for the 3.5% minimum down payment. Final eligibility, rate, and terms are determined by your FHA-approved lender.

Does Matrix Company Solutions serve my area?

Yes. Matrix Company Solutions is a licensed 203(k) renovation contractor serving Philadelphia and surrounding counties, South Jersey, and Southwestern Pennsylvania.

Build Up, Not Out

Philadelphia 3rd Floor Addition

Do you need extra space? Are you having trouble finding a house big enough for your family? If you love your neighborhood, the schools, and the proximity to shopping and entertainment but need more room, a 3rd floor addition may be your answer. A 203(k) loan can provide the money needed to add a 3rd floor — giving your family the space it needs while increasing the value of the property.

Matrix Construction builds 3rd floor additions throughout Philadelphia. Our knowledgeable staff will help you design an addition that meets all of your needs.

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Modern 3rd floor addition in Philadelphia

Design, Build & Remodel

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Philadelphia 3rd floor addition new design

3rd Floor Addition in Philadelphia

This video shows how a homebuyer purchased a house too small for their family and, with a 203(k) loan, was able to add the much-needed additional space — increasing their home's equity by over $100,000.

What You Need to Know

Plan your Philadelphia home addition the right way. This video breaks down zoning rules, permits, design steps, timelines, costs, and financing options (including 203(k) loans). Whether you're adding a room, building up, or creating a rooftop deck, this guide shows how Matrix Construction handles everything — from 3D design to final inspection.

Why You Should Consider a 3rd Floor Addition

You want to increase the living space in your current home.

You need more space but love your current neighborhood.

Your family is growing.

You need a home office or workspace for hobbies.

Important Considerations While Deciding on a 3rd Floor Addition

Do you have enough space to add to your house? Is your house secure enough to support an addition? Have other properties in your neighborhood been improved? Will your house fit in with the current look of the neighborhood with the addition? Do you have the budget or will you need financing such as a home equity loan?

Possible Uses for a 3rd Floor Addition

Call our team of experts today and we can help plan a 3rd floor addition that meets your family's needs — and ask about financing your project with a fast, easy 203(k) loan.

Master suite with ensuite

Guest room with guest bathroom

Nursery

Home office

Gym

Family room

Important Elements to Consider

Will the space have adequate natural light and enough ceiling height? Dormers are sometimes added to provide maximum height to the windows. The space must also be adequately insulated with an efficient heating and cooling system — without these, a 3rd floor can get very cold in winter and very hot in summer. Matrix Construction has completed many 3rd floor additions in the Philadelphia area, and when buying a home, we can help you obtain 203(k) financing to add that floor.