An FHA 203k loan is a loan that allows buyers and homeowners to get a loan for both the purchase of property and any extra funds needed for renovation or repair. This loan is similar to refinancing for existing homeowners. To qualify for an FHA 203k loan, the borrower must meet the qualifying down payment and debt to income ratio. The process is nearly identical to applying for a conventional home loan. The applicant must provide documentation of income, as this is a requirement for all FHA loans.