I purchased my home using a 203K loan. My house needed a LOT of work. The process was a bit more detailed and took longer but it was worth it. The FHA inspector put a layer of professionalism between myself and the contractor that made me feel very secure. I had th fire my first contractor and find another one and still, overall, my experience was very good. I recommend 203K loans to my clients all the time. I think it is a terrific loan product to help buyers to get into a home with an FHA backed loan so they still only need a low down payment, if the home needs some repairs. It's perfect for short sales and foreclosure homes.