The combination of low mortgage interest rates and a large inventory of distressed properties makes buying a home with a K loan a smart option.  The K loan is another name for the FHA 203k loan program offered by HUD.  See the HUD.gov link below.   The idea is to find a property that may be offered at a reduced price due to some repairs that might be necessary to make it more attractive.   You then purchase the property, have the repairs done to your satisfaction, and build in the cost of the repair into your mortgage. Check out the before and after photos below.  These photos are from a house purchased with a K loan.  The buyer used renovation funds built into their financing- they needed no additional funds out of pocket and they had their beautiful, modern kitchen before moving in. Here's how it works.  Once you find a house that interests you, we will perform a 'pre-inspection' of the house at no charge to you.  The 'pre-inspection' will provide you with the following valuable information:   Provide info on all repairs necessary to meet FHA lending guidelines.   Provide options and costs to make the necessary repairs.   Provide options and costs for repairs you may wish to have done.   Provide downpayment and closing cost estimates.   Help you understand the value of buy/renovate vs. just buy.   Help you visualize getting the house that you really want without putting any money out of pocket. Getting Started.  The process starts with speaking with a K Loan Specialist. The K Loan Specialist will do the following:   Provide you and your realtor with the details of the K Loan program and making sure the K Loan is the right for you.   The next step is for your realtor to submit a Pre-Inspection Request to our renovation department. Once they submit that request, they will receive an engagement letter that will be signed by the realtor and sent back to us.   An inspector is then assigned to your property and will provide you and the realtor with a report detailing all of the improvements required and requested.   Click here for the HUD.Gov/203k Loan Program Description