So, you are in the market to buy or refinance your home and one of the factors that comes into play is what will FHA 203k rates be at that time of your loan.  Like gas prices FHA 203k interest rates can fluctuate on a daily basis just like other mortgage rates.


To start, you should know that all home loans FHA and Conventional have different costs associated with the interest rate depending on the product, loan size, type of property, credit score, etc. FHA 203k mortgage rates are no different in that sense but are divided into either the FHA 203k Streamline or a regular Standard 203k. Both 203k loans are priced differently from each other.


With there being two different 203k versions, one being able to do just about everything under the sun (Standard 203k), and the other having limitations (Streamline 203K), you have probably figured out by now that the Standard 203k has the higher cost & interest rate associated with it than the interest rate for the 203k Streamline.


Now when we talk about FHA 203k loan rates being higher, we’re comparing it to a Regular FHA loan that doesn’t include renovation funds in the loan amount. There can be some variance between different FHA 203k lenders on any given day but Rates in comparison to an FHA loan without rehabilitation funds can typically range from a quarter percent (.25%) to a half percent (.5%) higher than Regular FHA loans.


When you consider the advantages of having an All in One Loan that allows you to: purchase or refinance as well as include funds for all the improvements you like, topped off with a minimal down payment or equity, the slight difference in rates are still quite an attractive lending option to both homebuyers and homeowners compared to any other alternative if any.


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  • Do you have to have really good credit to get a 203k fha loan?

    • Hi Meaghan,

      A really good credit score is always helpful but there is some flexibility when it comes to FHA financing so it’s best to find out more about that with your 203k lender

      Good luck.

  • My story is long and complicated so I’ll save most of that for a lender if they need to hear it but some of it is necessary for a competent response by someone. I retired on disability several years ago after 27 years of non stop full time employment. I own my home outright but it’s in dire need of major and complete remodel and major repair. In fact there is an argument for tearing it down and building a new one in its place. The amount of repair cost and remodel cost will approach 100,000 dollars according to a recent professional estimate. My credit history is improving but in todays world all you can truly find without an expensive membership is what they call a Vantage Score. Transunion says my Vantage is 673 while Credit Karma says my Vantage is 641. In reality I guess I have no real Idea what my FICO score is. The FICO is a Proprietary product which means FICO owns it. A score that directly affects your life they own and won’t share without you applying for a loan or paying them directly. lol. One more way the corporations control our lives I guess. I will be four years out of chapter 7 discharge in December of 2015. Severe income loss due to my unexpected retirement caused my bankruptcy. However due to various things much of my income has come back five years into my retirement. I like where I live and would not really make any money in putting property up for sale. Assuming my credit scores are close to vantage could I get an FHA 203k with those scores and given my credit history. I mean bankruptcy will very soon be 4years discharged. Second do thy do 203k to folks who already own a home? If you read the rules of 203k it sounds like they do.

    • Hi Matt,

      The credit scores you mentioned sound’s doable as well as enough time has already passed since the discharge of your bankruptcy for FHA financing. When it comes to credit scores, the one’s your lender will receive from the three bureaus are the only ones that will matter (for better or worst) and “yes” FHA 203k refinances are available for those who already own a home.

      Best of luck

  • Can you use a down payment assistance program with an fha 203K loan? I was advised by a bank that you can’t use any program with that loan.

    • Rachel Asked:

      Can you use a down payment assistance program with an fha 203K loan? I was advised by a bank that you can’t use any program with that loan

      203k Mortgage Lender’s Answer:

      Hi Rachel,

      The answer is “Yes” you can use down payment assistance programs with the FHA 203k loan although not all lenders can or will so it just depends on who is doing your 203k loan.

      Best of luck.

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