What is the 203k renovation loan program?

The 203k renovation loan program allows a borrower to borrow the sum needed both to purchase a home and improve it in one step. Also called the "streamlined rehabilitation" program, this option appeals to borrowers who are buying a fixer-upper. As with all loans in the FHA home loan program, the financing is given through a private lender and then guaranteed by the FHA. The result is a cheaper, more flexible loan for qualified borrowers. Borrowers must have good credit and a stable income to qualify for this program, but the down payment size is flexible.