203 K is an FHA program that allows you to include the costs of repairs in the loan amount. It is only available on ANY properties (not just HUD homes) that need repairs as allowed by FHA guidelines - such as roof, foundation, replacing non-working appliances, etc. you can't just redecorate on a 203K. Finding a lender willing to do the 203K is the hard part. The government red tape involved is a big turn-off - you'll agree if you go through with it. A better way to do it is to get a regular FHA loan (203B) if you can or a conventional loan if the property won't qualify for FHA. Then do a home improvement loan for the repair costs.
I am a Realtor in Texas with 20 years of experience. This program has been around a long, long time. If you know anyone looking for a home or any real estate property in the Dallas/Fort Worth area please have them call 972-588-8868!