8 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.
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
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.
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
Lender | NerdWallet rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
 CrossCountry Mortgage: NMLS#3029 | Best for ease of application | 500 | 3.5% | Read review |
 Fairway Independent Mortgage: NMLS#2289 Learn more at Fairway Independent Mortgage | Best for first-time home buyers | 580 | 3.5% | Learn more at Fairway Independent Mortgage |
 Flagstar: NMLS#417490 | Best for rate transparency | 580 | 3.5% | Read review |
 Guild Mortgage: NMLS#3274 | Best for digital convenience | N/A | 3.5% | Read review |
 loanDepot: NMLS#174457 | Best for variety of loan types | 520 | 3.5% | Read review |
 New American Funding: NMLS#6606 Learn more at New American Funding | Best for nontraditional credit | 500 | 3.5% | Learn more at New American Funding |
 PrimeLending: NMLS#13649 | Best for borrowers with weaker credit | 580 | 3.5% | Read review |
 Sebonic Financial: NMLS#66247 | Best for digital convenience | 580 | 3.5% | Read review |
CrossCountry Mortgage: NMLS#3029
Min. credit score
500Min. down payment
3.5%at Fairway Independent Mortgage
Fairway Independent Mortgage: NMLS#2289
Min. credit score
580Min. down payment
3.5%at Fairway Independent Mortgage
Flagstar: NMLS#417490
Min. credit score
580Min. down payment
3.5%Guild Mortgage: NMLS#3274
Min. credit score
N/AMin. down payment
3.5%loanDepot: NMLS#174457
Min. credit score
520Min. down payment
3.5%at New American Funding
New American Funding: NMLS#6606
Min. credit score
500Min. down payment
3.5%at New American Funding
PrimeLending: NMLS#13649
Min. credit score
580Min. down payment
3.5%Sebonic Financial: NMLS#66247
Min. credit score
580Min. down payment
3.5%Last updated on March 1, 2023
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 more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country. We rated them on criteria including rate transparency, loan types offered, ease of application and more.
Some of the providers are NerdWallet partners, but this did not influence our selections.
For inclusion on this roundup, lenders must score a 3.5 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 2021 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
To recap our selections...
NerdWallet's Best FHA 203(k) Mortgage Lenders
- CrossCountry Mortgage: Best for ease of application
- Fairway Independent Mortgage: Best for first-time home buyers
- Flagstar: Best for rate transparency
- Guild Mortgage: Best for digital convenience
- loanDepot: Best for variety of loan types
- New American Funding: Best for nontraditional credit
- PrimeLending: Best for borrowers with weaker credit
- Sebonic Financial: Best for digital convenience
Frequently asked questions
In addition to the lenders we've highlighted above, you can also use the Department of Housing and Urban Development's FHA lender search page to find FHA 203(k) loan lenders. It's a helpful tool, because while FHA 203(k) rehab loans are widely available, not every FHA-approved lender offers the 203(k).
To use the HUD search tool, enter your search parameters — your state is probably the most important, since lenders are licensed by individual states — and click the "Rehabilitation" box at the bottom of the list, where it says "203(k) Rehabilitation Mortgage Insurance Program." If you're trying to get the scoop on a specific lender, you can just enter the company name at the top of the form, then click the "Rehabilitation" box at the bottom.
» MORE: Best FHA lenders
FHA 203(k) loans have the same down payment requirements as standard FHA loans. If your credit score is 580 or above, the FHA allows a down payment as low as 3.5%. For credit scores between 500 and 579, the required FHA down payment is 10%.
Although the FHA has low credit score requirements, individual lenders may choose to set higher minimums. If your credit score falls below 620 or so, you may need to do more hunting to find a lender that will approve your 203(k).
All FHA loans, including the 203(k), allow you to use gift money or other forms of down payment assistance.
To qualify for an FHA 203(k) loan, you'll have to meet the same FHA requirements you would for a standard loan. These include the credit score and down payment minimums, as well as having a debt-to-income ratio of no more than 43%. In some cases a slightly higher DTI may be allowed.
The property you're buying or refinancing must be your primary residence. Though the home does not have to be up to the FHA's housing standards — after all, you're fixing it up — the property should be able to pass an FHA appraisal after the repairs are completed.
