I will answer this question in 4 parts.

A 203K can be an FHA or convention loan program. The most common is the FHA 203k loan. This loan allows you to borrow money, using only one loan, for both home improvement and a home purchase. These loans can also be used just for home improvements. 203k loans are guaranteed by the FHA, which means lenders take less risk when offering this loan. As a result, it’s easier to get approved. Below is a brief explantation of how the 203k Loan works with my Home Advisory Team member Ron Bryon of University Lending Group.