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8 Best FHA 203(k) Mortgage Lenders of 2020

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

NerdWalletAugust 10, 2020
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Home buyers can use an FHA 203(k) loan to purchase and renovate a house with the same mortgage. Homeowners can use an FHA 203(k) refinance loan to roll the cost of home improvements into their monthly mortgage payment.

To take advantage of this versatile mortgage product, you’ll need an FHA 203(k) lender. NerdWallet has identified some of the top FHA 203(k) lenders across several categories to help you get started.

Summary of Best FHA 203(k) Mortgage Lenders of 2020

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at New American

New American Funding: NMLS#6606

4.5

NerdWallet rating 
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Min. Credit Score

620

Min. Down Payment

3%

National / Regional

National

at New American


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 rates offered to borrowers are higher than the government-reported median of all lenders.

Read Full Review
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at Fairway

Fairway Independent Mortgage: NMLS#2289

4.0

NerdWallet rating 
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Min. Credit Score

620

Min. Down Payment

3%

at Fairway


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.

Read Full Review
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at LoanDepot

loanDepot: NMLS#174457

3.5

NerdWallet rating 
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Min. Credit Score

620

National / Regional

National

at LoanDepot


Why we like it

Good for: borrowers looking to refinance or who want to start the application process online.

Pros

  • Offers digital income, asset and employment verification.

  • Offers multiple renovation loan options.

  • Has over 200 affiliated loan stores nationwide for customers who prefer face-to-face service.

Cons

  • Mortgage rates aren't available online; you'll need to contact a loan officer.

  • Does not offer home equity loans or lines of credit.

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Wintrust Mortgage: NMLS#449042

4.0

NerdWallet rating 
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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good for: first-time home buyers and those seeking specialty mortgages like construction loans.

Pros

  • Online application and progress tracking are available.

  • Offers specialty loans, such as construction, renovation and reverse mortgages.

  • Participates in some first-time home buyer assistance programs.

Cons

  • Mortgage rates are available only by contacting a loan officer.

  • Physical locations aren't available in all states.

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Caliber: NMLS#15622

3.5

NerdWallet rating 
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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good for: first-time home buyers, veterans and those who may have credit challenges to overcome.

Pros

  • Offers extensive educational resources for military borrowers.

  • Provides digital tools for a streamlined application process.

  • Participates in some state down payment assistance and first-time homebuyer programs.

Cons

  • No mortgage rates displayed online.

  • Doesn't offer home equity loans or lines of credit.

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HomeBridge: NMLS#6521

3.5

NerdWallet rating 
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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good for borrowers who want a loan officer's help, in person or on the phone, when deciding among the wide range of available mortgage options — including loans to buy and renovate.

Pros

  • Offers a full array of mortgage products, including government and renovation loans.

  • Has loans for most purposes, including purchase, refinance and jumbo mortgages.

  • Online portal keeps borrowers up-to-date on the loan application's progress.

Cons

  • Doesn't post interest rates on its site.

  • Doesn’t offer home equity loans or lines of credit.

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PrimeLending: NMLS#13649

3.5

NerdWallet rating 
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Min. Credit Score

620

Min. Down Payment

3%


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.

  • Doesn't offer home equity products.

Read Full Review

Northpointe: NMLS#447490

5.0

NerdWallet rating 
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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good for: those seeking an abundance of loan offerings — including a no-down-payment mortgage that helps accelerate home equity accumulation.

Pros

  • A full slate of loan offerings.

  • Offers a no-down-payment loan with shorter repayment terms that helps accelerate home equity accumulation.

  • Serves all 50 states plus the District of Columbia.

  • A web app provides a number of customer conveniences.

Cons

  • Doesn’t offer construction loans at this time.

Read Full Review

Last updated on August 10, 2020

Methodology

NerdWallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services each lender offers to consumers who are actively shopping for the best mortgage. The five key areas we evaluated include the variety of loan types and products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available Home Mortgage Disclosure Act data. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.

To recap our selections...

NerdWallet's Best FHA 203(k) Mortgage Lenders of 2020

Frequently asked questions