Best FHA 203(k) rehab mortgage lenders in 2025

If you’re buying a home that needs some work, you can get the financing for the purchase and renovation through an FHA 203(k) loan, also known as a rehab loan. This type of FHA loan keeps things simple with one mortgage, one set of closing costs and one monthly mortgage payment. Here is Bankrate’s guide to the best 203(k) rehab mortgage lenders in 2025.

Best FHA 203(k) rehab mortgage lenders

Best FHA 203(k) rehab mortgage lenders

New American Funding

Rating: 4.6 stars out of 5

4.6

Learn more in our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loan products: Conventional, jumbo, FHA, VA, USDA
  • Credit score minimum: 620 for conventional loans
  • Down payment requirements: 3% for conventional loans; 3.5% for FHA loans; none for VA loans or USDA loans

• Pros and cons

  

  Pros

  • More than 270 branch locations
  • Financing initiatives for Latino, Black and LGTBQ+ buyers
  • Wide range of loan options, including programs for self-employed borrowers and USDA loans
  • All-cash buying program

  

  Cons

  • Lowest advertised rates require paying points and a hefty 40% down payment
  • Doesn't disclose lender fees online

Movement Mortgage

Rating: 3.9 stars out of 5

3.9

Learn more in our Bankrate review

• Lender details

  • Availability: All U.S. states
  • Loan products: Conventional, jumbo, FHA, VA, USDA
  • Credit score minimum: 620 for conventional loans; 580 for FHA loans and VA loans
  • Down payment requirements: 3% for conventional loans; 3.5% for FHA loans; none for VA loans or USDA loans

• Pros and cons

  

  Pros

  • Free customized rate quote
  • Speedy underwriting and loan processing
  • Offers some e-closing capabilities

  

  Cons

  • No mortgage rates on its website
  • Some loan products handled by third parties

How to find the best 203(k) lender for you

Finding and comparing the best rehab loan lenders can take time. The U.S. Housing and Urban Development’s (HUD) online database of approved HUD lenders can be a useful source. Some 203(k) loan lenders might have slightly different sets of criteria, and finding the best one for your financial situation is worth wading through the offerings. Once you’ve narrowed it down to a few contenders, you can compare their rates and terms.

Additional FHA resources

There are several other FHA loan types in addition to 203(k) rehab mortgages. Here’s more:
• Guide to FHA home purchase loans
• FHA loan rates
• FHA refinance rates
• FHA loan limits

• Methodology

  To determine the best FHA 203(k) rehab mortgage lenders, Bankrate periodically evaluates more than 75 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. The best FHA 203(k) rehab mortgage lenders generally have a Bankrate Score of 3.9 stars or higher. Learn more about our methodology.