Rehabilitation Mortgage Insurance

 

The Section 203(k) program is HUD's primary program for the rehabilitation and repair of single family properties. It is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. HUD's 203(k) program will allow a purchase or refinance transaction plus include in the loan amount the cost of making repairs and/or non luxury improvements.

Active 14.108 Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development F - Guaranteed/Insured Loans Not applicable. National Housing Act, as amended, Section 203(k) Individual and families. Individuals and families. Documentation regarding the characteristics of the property and the qualifications of the borrower are assembled by the lender and submitted with the application. This program is excluded from coverage under OMB Circular No. A-87. Preapplication coordination is not applicable. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Application is submitted through a HUD-approved lending institution. See Application Procedure. Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. These loans may be used to rehabilitate an existing 1 to 4 unit dwelling in one of four ways: (1) Purchase a structure and the land on which the stick built structure is located and rehabilitate it; (2) purchase a structure on another site, move it onto a new foundation on the mortgaged property and rehabilitate it; or (3) refinance the existing lien secured against the subject property and rehabilitate such a structure. Maximum insurable mortgage loans for an occupant mortgagor are the same as prescribed for Section 203(b) - Program 14.117. HUD offers two 203K rehabilitation loan programs. The limited 203 (k) program does not require a minimum amount of repair costs but the program is capped at a total of $35,000 for the cost of improvements/repairs. The other program is the Standard 203(k). A minimum of $5,000 of repair/improvement costs are required but, there are no limitations on the amount of the repair/improvements. However, statutory loan limits apply. HUD insures lenders against loss on the 203(k) loan prior to the rehabilitation/improvements are completed. Not applicable. Not applicable. Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the FHA regulations. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. The mortgage term may extend for 30 years. Method of awarding/releasing assistance: Quarterly. For additional information, individuals are encouraged to contact the FHA Resource Center by phone at 1-800-CALLFHA (1-800-225-5342), by email at answers@hud.gov or visit the FHA Resource Center site at https://www.hud.gov/program_offices/housing/sfh/fharesourcectr Kevin Stevens
451 7th Street, SW
Washington, DC 20410 US
answers@hud.gov
Phone: (800) 225-5342 https://www.hud.gov/program_offices/housing/sfh/203k 86-4587-0-3-371 (Guaranteed/Insured Loans) FY 18 FY 19 FY 20 - Not applicable/available. Not applicable. Not applicable.