FHA 203(k) Loans-Which One is Right for You? Tuesday, July 15th, 2014 at 1:03pm. Tracy Jones The main reason to secure an FHA 203(k) loan is when the buyers wish to repair, upgrade, or improve the home they are purchasing. FHA 203(k) loans are insured by the Federal Housing Administration (FHA), who have insured more than 40 million mortgages since 1934. The two…