The FHA 203k (also shown as 203(k)) program allows homeowners to get an FHA loan that combines the home’s purchase price and the cost to rehab that home up to 125 percent of the purchase price. Loans to rehab and refinance a borrower’s current residence are also available under the 203(k) program. The 203(k) program is also a tool for FHA-approved lenders to originate loans for individuals, nonprofits and government development agencies interested in purchasing foreclosed properties in need of repair. Compared to conventional purchase and rehab loans, the 203(k) loans carry less risk to lenders since these loans are backed by thef ull faith and credit of the federal government. You can find out more about 203(k) loans at the Dept. of Housing and Urban Development’s (HUD) website, HUD.gov. Lenders that are certified to do FHA loans should also be able to do a 203(k) loan.