An FHA 203k loan is a home improvement loan available through the FHA. An individual can finance the renovation of a primary residence for purchase or refinance. Improvements allowable through the FHA 203k program include:

Additions
New bathrooms
New Kitchens
Windows
Roofing and Siding
New Furnace or central air conditioning

The FHA 203k loan allows financing up to 96.5% of the value of the property after the improvements have been completed. The program does not allow ground up construction or finishing a construction project on a house that never has never had a certificate of occupancy.