10 Best FHA 203(k) Mortgage Lenders of November 2024
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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, they can refinance and pay off home improvements within their monthly mortgage payment.
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10 Best FHA 203(k) Mortgage Lenders of November 2024
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
580 | 3.5% | |||
 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 | |
 Wintrust Mortgage: NMLS#449042 LEARN MORE on NerdWallet | N/A | 3.5% | LEARN MORE on NerdWallet | |
 Flagstar: NMLS#417490 LEARN MORE on NerdWallet | 580 | 3.5% | LEARN MORE on NerdWallet | |
 Guild Mortgage: NMLS#3274 LEARN MORE on NerdWallet | 540 | 3.5% | LEARN MORE on NerdWallet |
- Displays detailed sample rates for many of its loan products.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Offers a variety of FHA loans, including renovation mortgages.
- Was among the top 10 lenders by loan volume for FHA mortgages in 2022, according to the latest federal data.
- Lender's "Same Day Mortgage" offer not available for FHA loans.
New American Funding: NMLS#6606
500
3.5%
- Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Dedicates a significant portion of its business to FHA lending.
- FHA mortgage origination fees and interest rates tend to be on the high end, according to the latest federal data.
Wintrust Mortgage: NMLS#449042
N/A
3.5%
- Offers a broad assortment of mortgages, including FHA renovation loans.
- Participates in first-time home buyer assistance programs in Illinois and Wisconsin.
- Offers online conveniences to apply for a mortgage and track progress.
- Sample rates for some loan products are available only by contacting a loan officer.
- No online chat function available on website.
- Offers a wide range of loan types and products, including FHA renovation loans and FHA streamline and cash-out refinance mortgages.
- Borrowers can apply and track loan status online.
- Offers customized online rate quotes with monthly payment estimates.
- Does not offer FHA energy efficient mortgages.
- Was one of the top 10 lenders by volume for FHA lending in 2022, according to the latest federal data.
- Has retail branches in most states.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Origination fees for FHA loans tend to be on the high end, according to the latest federal data.
- Was among the top five lenders by volume for FHA lending in 2022, according to the latest federal data.
- Online loan calculator lets borrowers compare monthly payments and lifetime interest.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage rates aren't available online; you'll need to contact a loan officer.
- Origination fees for FHA loans tend to be on the high end, according to the latest federal data.
- Was one of the top 10 lenders by volume for FHA lending in 2022, according to the latest federal data.
- Loans can be processed in as little as seven days, the lender says.
- Movement Boost program can help FHA borrowers with down payment and closing costs.
- Sample mortgage rates are not available online.
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.
CrossCountry Mortgage: NMLS#3029
500
3.5%
- 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.
- 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.
More from NerdWallet
Last updated on November 1, 2024
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 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 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 2022 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best FHA 203(k) Mortgage Lenders of November 2024
- Rate: Best for first-time home buyers
- New American Funding: Best for nontraditional credit
- Wintrust Mortgage: Best for rate transparency
- Flagstar: Best for overall mortgage lending
- Guild Mortgage: Best for customer satisfaction
- loanDepot: Best for variety of loan types
- Movement Mortgage: Best for down payment assistance
- Fairway Independent Mortgage: Best for FHA loan specialization
- CrossCountry Mortgage: Best for variety of loan types
- PrimeLending: Best for construction and renovation loans
