Buying a home that needs some work? Or maybe you want to turn a property into an income-producing investment? A 203K loan might be the perfect solution.
In this guide, you'll learn what a 203K loan is, how it works, who it’s for, and how you can use it to renovate and finance your home all in one simple process.
A 203K loan is a special kind of mortgage backed by the FHA (Federal Housing Administration). It lets you buy (or refinance) a home and roll the cost of repairs or renovations into a single loan.
Instead of taking out a separate construction loan or paying for repairs out-of-pocket, you can borrow the money upfront and pay it off over time through your mortgage.
203K loans help people turn not-quite-perfect homes into places they love. Whether you’re fixing up a family home, updating a rental property, or trying to build equity through smart upgrades, this loan offers real benefits: