An FHA 203k loan enables you to borrow money, with just one loan, for both home improvement and a home purchase. 203k loans are guaranteed by the FHA, meaning lenders take less risk when offering this loan. As a result, it tends to be easier to get approved.

Benefits of an FHA 203K Loan:

• You will gain instant equity
• Usually less competitive market to purchase a home that needs improvements
• Covers the full price of the home plus any eligible repairs (non-structural)

Borrower requirements for FHA 203K Loan:

• Borrowers must live in the house for 12 months - this is not a "house flip" loan
• 580 minimum credit score
• 3.5% down payment

An FHA 203K loan is a perfect option to buy a house that needs a little hard work and love to make it your unique home.