10 Best FHA 203(k) Mortgage Lenders of January 2025
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Home buyers can use an FHA 203(k) loan to purchase and renovate a house with the same mortgage — or, in the case of an existing home renovation, you can refinance and pay off home improvements within your monthly mortgage payment.
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10 Best FHA 203(k) Mortgage Lenders of January 2025
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
 New American Funding: NMLS#6606 Top 3 most visited 🏆 Learn more at New American Funding | 500 | 3.5% | Top 3 most visited 🏆 Learn more at New American Funding | |
580 | 3.5% | Learn more at First Federal Bank | ||
 CrossCountry Mortgage: NMLS#3029 Compare More Lenders on NerdWallet | 500 | 3.5% | Compare More Lenders on NerdWallet | |
 Wintrust Mortgage: NMLS#449042 Compare More Lenders on NerdWallet | N/A | 3.5% | Compare More Lenders on NerdWallet | |
 Flagstar: NMLS#417490 Compare More Lenders on NerdWallet | 580 | 3.5% | Compare More Lenders on NerdWallet |
New American Funding: NMLS#6606
500
3.5%
- Offers a wide variety of purchase and refinance mortgages.
- Has unique buyer assistance programs.
- Average origination fees are on the high side, according to the latest federal data.
- Personalized mortgage rates are not available on the website without providing contact information.
First Federal Bank: NMLS#408902
580
3.5%
- Almost a quarter of all loans last year were FHA loans.
- Average mortgage rates are on the lower side, according to the latest federal data.
- Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
- No dedicated mobile app for mortgage borrowers.
- Some loans are geographically limited.
CrossCountry Mortgage: NMLS#3029
500
3.5%
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Qualified borrowers can receive up to $6,500 in down payment assistance.
- High market share of FHA loans.
- Doesn’t post rates online.
- No mobile app.
Wintrust Mortgage: NMLS#449042
N/A
3.5%
- Highly rated mobile app.
- Offers FHA renovation loans.
- Offers up to $6,000 in down payment assistance to borrowers in Illinois and Wisconsin.
- Can’t customize sample rates online.
- No chatbot or live chat for customer service.
- Doesn't offer FHA streamline or cash-out refinance loans.
- Reported average time to close (20-30 days) is faster than industry standard.
- Offers down payment assistance to first-time home buyers.
- The lender’s mobile app is focused on banking, not mortgages.
- Some loans and programs are restricted by area.
- Offers several programs to make homeownership more accessible.
- Offers loans for manufactured homes.
- Renovation loan options are available.
- Does not publish interest rates online.
- No mortgage mobile app.
- Loans are not available in every state.
- Offers a variety of repayment terms for fixed-rate loans.
- Does a substantial amount of business in FHA lending.
- mello smartloan product can streamline mortgage application, appraisal and title search.
- Interest rates are not available on the website.
- Can't apply for a mortgage on the lender's mobile app.
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of mortgages, including renovation loans.
- Doesn't offer customer service chat with a live agent.
- Average closing time under 25 days, faster than the national average.
- Offers down payment and closing cost assistance for FHA loans, with no income limits.
- Lends a high market share of FHA loans.
- Doesn’t post mortgage rates online.
- No online chat for customer service.
- Offers closing cost assistance.
- Wide variety of loan types, including renovation, refinance and energy-efficient FHA loans.
- Lends a high volume of government-backed loans."
- Loans are not available in all states.
- Rates are not posted online.
- Does not have a mobile app.
More from NerdWallet
Last updated on January 2, 2025
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.
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 40 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 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 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best FHA 203(k) Mortgage Lenders of January 2025
- New American Funding: Best for highly rated mobile app
- First Federal Bank: Best for borrowers with weaker credit
- CrossCountry Mortgage: Best for down payment assistance
- Wintrust Mortgage: Best for variety of government loans
- Flagstar: Best for FHA loans overall
- Guild Mortgage: Best for borrowers with nontraditional credit
- loanDepot: Best for variety of repayment terms
- Rate: Best for fast preapproval
- Movement Mortgage: Best for down payment assistance
- PrimeLending: Best for fixer-uppers overall
