What is an FHA 203(k) loan and who is it for in Washington?

The FHA 203(k) loan is a renovation mortgage that combines the purchase price and renovation costs into one FHA-insured loan. It comes in two versions: the Limited 203(k) for projects under $35,000 that don't involve structural work, and the Standard 203(k) for major renovations including structural changes. It's designed for buyers who want to buy and fix up a property in Washington's fixer-upper market without managing a separate construction loan during the process.