The dilemma between going for 203K loans and other types of loans is one that people in low-income groups face on a regular basis. The primary reason for this is that most people are not aware of the basic benefits of 203K loans or even where they stand when compared to other types of mortgage loans and general loans.

1.  All in one mortgage loan versus a piecemeal loaning system:

If an individual wanted to buy a real estate property in disrepair and rehabilitate it to make it fit for living, he (or she) would have to get a loan for the acquisition process, get one for the rehabilitation process and finally get financing for paying them both. All these lending instruments would have their own amortization periods and interest rates that would have to be collated and reconciled with each other. Alternatively, a 203K loan would be a one-stop solution for all the processes i.e. buying the property and rehabilitating it. 

2.  High interest rates of mortgage loans versus affordable rates: 

One of the problems of getting other types of loans from the market is that the interest rates turn out to be quite high. On the other hand, 203K loans have interest rates that are lower and, hence, much more beneficial to the borrower in the long term. 

3.  Short amortization period versus flexible duration for the repayment process:  

Finally, most individual loan instruments in the market tend to have amortization periods that are extremely short and this, in turn, results in a lot of pressure being piled onto the borrowers. In contrast, the 203K loans have flexible amortization periods. This means that a borrower can have them short or long depending upon his situations and comfort levels.