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Short answer: Yes, FHA 203k loans are still available! 

FHA 203(k) Lenders

There are tens of thousands of mortgage lenders in the United States, though only a relative handful offer FHA 203(k) loans. During HUD’s fiscal year of September 2021 through August 2022, 251 different mortgage lenders originated at least one FHA 203(k) loan. Of those 251 mortgage lenders, 68 originated only one FHA 203(k) loan and 158 originated less than ten. Why is that important?

No Two FHA 203(k) Lenders Are The Same

Finding a mortgage company that offers FHA 203(k) loans is hard enough; finding one that does them well is even more difficult. FHA 203(k) loans are arguably some of the toughest loans to close. Why?

FHA 203(k) guidelines are more complex than traditional loans, but the hardest part of any renovation loan is the homeowner’s ability to find a contractor willing to work within the confines of those guidelines. Not only does the contractor have to submit to a vetting process, but their bid also has to meet certain requirements. Depending on the scope of work and renovation costs, a 203(k) Consultant may need to be involved.

A strong renovation lender will be familiar with loan guidelines and have enough experience to assist a homeowner in their search for a contractor by setting the right expectations with that contractor from day one. They will provide the contractor with the parameters of bids acceptable to HUD on FHA 203(k) loans, and they will have solid relationships with 203(k) Consultants in the areas they serve. But that is not enough.

Lenders who do well in this segment of the mortgage industry invest in training for their loan officers and hire or train seasoned disclosure personnel, processors, underwriters, closers and post-closers to make sure loan fulfillment runs as smoothly as possible. Some lenders have a department dedicated to FHA 203(k) and other renovation loans. It is important to make sure that not only your loan officer understands how FHA 203(k) loans work, but the company they work for does as well. It takes a village to close these loans!

How can you find an FHA 203(k) lender?

Unfortunately, HUD does not publish a list of FHA 203(k) lenders.

Most mortgage lenders have a products or programs page on their website. That is a good place to start, but a company’s website only tells you whether or not they offer FHA 203(k) financing. It doesn’t tell you if they are any good at it.

I have been working with FHA 203(k) loans for the better part of my 20-year mortgage career. I’ve worked directly with home buyers and homeowners in the primary market, and with other lenders in the secondary market. I am licensed in FL, IA, IL, IN, MI, MN, MO, OH, TN, TX, and WI, and would be happy to help anyone who needs FHA 203(k) financing in those states. If you need help in another state, ask me! I may have a colleague I can recommend, or know another reputable lender in your state.


Jennifer Goldsby, NMLS #591226 | VP, Renovation Lending

Diamond Residential Mortgage Corporation NMLS #186805 | Equal Housing Opportunity

Disclaimer: The postings here reflect my personal opinion. They do not necessarily represent the opinions of Diamond Residential Mortgage Corporation and its management.