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.
Best FHA 203(k) Mortgage Lenders
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
4.0 /5 | 580 | 3.5% | Learn moreat New American Funding at New American Funding | |
4.0 /5 | 580 | 3.5% | ||
 Fairway Independent Mortgage: NMLS#2289 Learn moreat Fairway Independent Mortgage at Fairway Independent Mortgage | 3.5 /5 | 580 | 3.5% | Learn moreat Fairway Independent Mortgage at Fairway Independent Mortgage |
3.5 /5 | 580 | 3.5% | ||
3.5 /5 | 580 | 3.5% |
- 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.
- Mortgage origination fees tend to be on the high end, according to the latest federal data.
- 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.
- No online mortgage rates — you have to contact the lender for info.
Fairway Independent Mortgage: NMLS#2289
580
3.5%
- 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.
- 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.
- Offers a wide range of loan types and products, including FHA, VA and USDA.
- Borrowers can apply and track loan status online.
- Offers customized online rate quotes with monthly payment estimates, including mortgage insurance, when applicable.
- Home equity loans are geographically limited.
- Origination fees are on the high side compared with other lenders, according to the latest federal data.
- Convenient online application and loan process updates.
- Offers a variety of mortgage options, including FHA, VA and USDA loans.
- 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.
- 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.
- Does not offer home equity loan products.
- Origination fees tend to be higher, according to the latest federal data.
- Has branches across the country for customers who prefer face-to-face service.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage interest rates tend to be on the lower end, according to the latest federal data.
- Mortgage rates aren't available online; you'll need to contact a loan officer.
- Doesn't offer home equity loans or lines of credit.
- Offers a wide variety of mortgage loan types and products.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Doesn't display information online about rates and fees.
- Mortgage origination fees are on the high side, according to the latest federal data.
More from NerdWallet
Last updated on May 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.
NerdWallet's Best FHA 203(k) Mortgage Lenders
- New American Funding: Best for nontraditional credit
- PrimeLending: Best for borrowers with weaker credit
- Fairway Independent Mortgage: Best for first-time home buyers
- Flagstar: Best for rate transparency
- Sebonic Financial: Best for digital convenience
- Guild Mortgage: Best for digital convenience
- loanDepot: Best for variety of loan types
- CrossCountry Mortgage: Best for ease of application
Frequently asked questions
- How do you find an FHA 203(k) lender?
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
- Do you need a down payment for a 203(k) loan?
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.
- How do you qualify for a 203(k) rehab loan?
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.
