Through a single mortgage, an FHA 203(k) loan enables homebuyers and homeowners to finance the purchase or refinancing of a house and include the cost of renovation in the loan.   Rather than buying a home and then using their cash for improvements, homebuyers and home owners can finance repairs and improvements into the mortgage loan.

The FHA 203k loan program fills a unique and important need for homebuyers.  When buying a house that needs repair or modernization, homebuyers usually have to secure a short-term construction loan.  Construction loans often have relatively high-interest rates, short repayment terms, and a balloon payment.

The FHA 203k is the perfect solution to help both borrowers and lenders.  An FHA 203(k) loan is a single, long-term loan that covers both the purchase and the rehabilitation of a property. FHA 203k insured loans save borrowers time and money.