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.

Nov 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

4.5

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: First-time home buyers and other borrowers looking for a broad array of loan choices.

Pros

  • Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.

  • Its home equity line of credit can be used for an owner-occupied or second home.

  • Offers a program to enable buyers to make cash offers.

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

580

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, including renovation loans and ITIN loans.

Pros

  • Offers a robust suite of loan products, including ITIN loans for borrowers without Social Security numbers, renovation loans, government-backed mortgages and loans for self-employed borrowers.

  • Receives high marks for customer satisfaction, according to J.D. Power and Zillow.

Cons

  • Mortgage rates for different types of loans aren't posted online.

  • Origination fees are on the high side compared with other lenders, according to the latest federal 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 government-backed mortgage and refinance options, including FHA, USDA and VA loans.

Cons

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

Read Full Review

Guild Mortgage: NMLS#3274

3.5

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 a wide variety of loan products, including home improvement loans and mortgages for manufactured homes.

  • Has retail branches in most states.

  • Receives high marks for customer satisfaction, according to J.D. Power and Zillow.

Cons

  • Does not offer home equity loan products.

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

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

Good for: borrowers who want a variety of loan products paired with a smooth digital process.

Pros

  • Convenient online 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 loans or lines of credit.

  • Lender fees are on the high side, according to the latest federal data.

Read Full Review

Last updated on November 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 2021 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