Best FHA 203(k) rehab mortgage lenders in 2024
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 2024.
Bankrate’s picks for the best FHA 203(k) rehab mortgage lenders
| Lender | Bankrate Score | Credit requirements | Down payment minimum |
|---|---|---|---|
| LowRates.com | 3.7 | 620 for conventional loans; 700 for jumbo loans; 500 for FHA and VA loans | 3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans |
| New American Funding | 4.8 | 620 for conventional loans | 3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans |
| Guaranteed Rate | 3.8 | 620 for conventional and FHA loans; 580 for VA loans | 3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans |
| Flagstar Bank | 4.6 | 620 for conventional loans, 700 for jumbo loans, 580 for FHA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans |
| LoanDepot | 4.2 | 620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 620 for VA loans | 5% for conventional loans, 3.5% for FHA loans, none for VA loans |
| Fairway Independent Mortgage Corporation | 3.9 | Unavailable | 5% for conventional loans; 3.5% for FHA loans, none for VA loans and USDA loans |
Best FHA 203(k) rehab mortgage lenders
LowRates.com
-
- No fees
- Can close as fast as 20 days
- Offers HELOCs and home equity loans
New American Funding
-
- Offers initiatives for borrowers of color
- Diverse set of loan offerings
Guaranteed Rate
-
- Over 400 locations nationwide
- Interest rates listed online and updated daily
- Ranks no.4 among Scotsman Guide’s Top Retail Lenders
Flagstar Bank
-
- Offers several government-backed loan products with competitive rates
- “Destination Home” Mortgage with no down payment and flexible eligibility criteria
- Get up to $5,000 toward closing costs or your down payment with the Flagstar Gift Program
LoanDepot
-
- More than 1,700 licensed lending officers nationwide for customer support
- A+ rating accreditation by the Better Business Bureau (BBB)
Fairway Independent Mortgage Corporation
-
- More than 1,700 licensed lending officers nationwide for customer support
- A+ rating accreditation by the Better Business Bureau (BBB)
-
To determine the best FHA 203(k) rehab mortgage lenders, Bankrate evaluated 85 lenders based on several criteria, including affordability (APR, discounts and/or incentives); scope of loan offerings; customer reviews; and online capabilities. Our methodology creates a five-star scoring system, and each lender is assigned a Bankrate Score: The best lenders often have a Bankrate Score of 4.9 stars or higher. The Bankrate Score does not reflect a lender’s internal operations or practice but only considers a lender’s services and financial products.
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 may 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 resources
In addition to 203(k) rehab loans, the FHA offers several other loans, including its popular basic home mortgage — also known as the 203(b) loan. To learn more about FHA loans, explore these resources from Bankrate:
You may also like
How to get the best mortgage rate
How to find the best FHA mortgage lender
Best FHA mortgage lenders in 2024