Definition - What does 203(K) mean?
A 203(k) is a type of government secured mortgage that is made available for people who are refurbishing a property in order to live in it as their main residence. An advantage of a 203(k) loan is that it is backed by the Federal Housing Administration (FHA) and is fully insured against default. This allows lenders to be assured in the repayment of the loan and allows people of limited income to get mortgage assistance.
Justipedia explains 203(K)
The mortgage value of a 203(k) loan can exceed the value of the home to allow for necessary repairs and can be on either a 15 or 30 year term.