does the fha make the loan 
no the fha insures the loan you must get the loan through a financial institution such as a bank or credit union can you use a 203 k loan for all improvements no anything considered extravagant or luxurious such as a tennis court gazebo or a new swimming pool is not allowed however most repairs and upgrades do qualify including rehabbing an existing swimming pool the bottom linefha 203 k loans are government backed mortgages that work as construction loans to finance both the purchase of a property and the cost of renovating it including materials and labor the fha is not a lender but a mortgage insurer to get an fha 203 k loan borrowers need to apply through a bank credit union or another lender not all lenders offer this type of loan fha 203 k loans are an excellent solution for borrowers with a low credit score seeking to own a home in need of repairs varying from minimal to extensive work a low down payment and low interest rates fixed or adjustable also make this option attractive however borrowers need to consider the drawbacks when applying for this program like an upfront mortgage insurance premium to be paid every month a supplemental origination fee the extensive paperwork required and the lengthy time it takes to get approved 