203k loans are specialized renovation and construction loans backed by the Federal Housing Administration. Both new buyers and refinancing homeowners are eligible for these loans, which combine standard FHA mortgages with traditional home improvement loans.
FHA Fixer-Upper Loans
If you plan to buy a fixer-upper or make improvements to your home, the FHA 203k may be perfect for you. By creating a single loan to cover both your construction costs and your mortgage, the FHA 203k can simplify your home renovation process and bring down closing costs. USDA