BEST OF

5 Best FHA 203(k) Mortgage Lenders

Buying a fixer-upper or remodeling your current home? NerdWallet has selected some top FHA 203(k) lenders to make your loan search easier.

Aug 1, 2022

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Home buyers can use an FHA 203(k) loan to purchase and renovate a house with the same mortgage. FHA 203(k) refinance loans also roll the cost of home improvements into a monthly mortgage payment.

To take advantage of this versatile mortgage product, NerdWallet has identified some of the top FHA 203(k) lenders.

Best FHA 203(k) Mortgage Lenders

New American Funding
Learn more

at New American Funding

New American Funding: NMLS#6606

4.0

NerdWallet rating 
New American Funding

Min. credit score

500

Min. down payment

3.5%
Learn more

at New American Funding


Why we like it

Good for: borrowers who need to be evaluated on the basis of nontraditional credit and those interested in various down payment assistance programs.

Pros

  • Uses manual underwriting to evaluate creditworthiness.

  • Offers full online mortgage application, rate quotes, document upload and loan tracking.

Cons

  • Mortgage origination fees tend to be on the high end, according to the latest federal data.

Read Full Review
Fairway Independent Mortgage
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at Fairway Independent Mortgage

Fairway Independent Mortgage: NMLS#2289

4.0

NerdWallet rating 
Fairway Independent Mortgage

Min. credit score

640

Min. down payment

3.5%
Learn more

at Fairway Independent Mortgage


Why we like it

Good for: borrowers who want access to a wide variety of mortgages and the convenience of a comprehensive mobile application process.

Pros

  • Offers a robust suite of loan products, including a variety of renovation loans.

  • Has a digital application that can be completed in 10 minutes.

  • Works with some state housing finance agencies to offer mortgages with down payment and closing cost assistance.

Cons

  • Mortgage rates aren't posted online.

  • Origination fees are on the high side and are not offset by low rates, according to the latest data.

Read Full Review

Guild Mortgage: NMLS#3274

4.0

NerdWallet rating 
Guild Mortgage

Min. credit score

N/A

Min. down payment

3.5%

Why we like it

Good for: borrowers who value customer service, and first-time home buyers and others who may need the flexibility of a low-down-payment loan program.

Pros

  • Offers multiple online conveniences, including a full mortgage application, e-signatures and digital loan process tracking.

  • Offers a wide variety of loan products, including home improvement and manufactured home loans.

Cons

  • Does not offer home equity loan products.

  • Origination fees tend to be on the higher end, according to the latest data.

Read Full Review

PrimeLending: NMLS#13649

4.0

NerdWallet rating 
PrimeLending

Min. credit score

580

Min. down payment

3.5%

Why we like it

Good for: borrowers looking for closing cost assistance, as well as those seeking to renovate or to build a new home.

Pros

  • Full online application includes document uploads and automated loan updates.

  • Offers a "float-down" interest rate lock.

  • Offers a proprietary closing-cost assistance program.

Cons

  • No online mortgage rates — you have to contact the lender for info.

Read Full Review

Sebonic Financial: NMLS#66247

3.5

NerdWallet rating 
Sebonic Financial

Min. credit score

580

Min. down payment

3.5%

Why we like it

Sebonic Financial offers a standard variety of mortgage types and products, and the convenience of a digital application process. Sebonic doesn’t publish mortgage rates online or offer home equity loans or lines of credit.

Pros

  • Offers a variety of online conveniences, including a digital application and loan process updates.

  • Offers a variety of mortgage options, including FHA, VA and USDA loans.

Cons

  • Mortgage interest rates aren't published online.

  • Doesn’t offer home equity loan products or renovation mortgages.

Read Full Review

Last updated on August 1, 2022

Methodology

The star ratings on this page reflect each lender's rating for FHA products. Read more about how we determine those ratings.

The lenders on this page are chosen using this methodology:

NerdWallet reviewed nearly 60 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (lenders had to have at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.

For inclusion on this roundup, lenders must score a 4 or above according to our FHA loan methodology and offer 203(k) loans.

NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2020 HMDA data for origination volume, origination fee, rate spread and share-of-product data.

To recap our selections...

NerdWallet's Best FHA 203(k) Mortgage Lenders

Frequently asked questions