Rehabilitation Mortgage Insurance


FHA's 203(k) Rehabilitation Mortgage program is HUD's primary program for the rehabilitation and repair of one to four family properties. It is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. The 203(k) program works with either a purchase or refinance transaction and allows the cost of making repairs and/or improvement to be included in the loan amount.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
Program Accomplishments
Not applicable.
National Housing Act, as amended, Section 203(k), Title National Housing, Part II, Section 203(k)
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Individual and families.
Beneficiary Eligibility
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.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
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.
Award Procedure
See Application Procedure.
Not applicable.
Approval/Disapproval Decision Time
From 15 to 30 days. Approval decision is made by a HUD-approved lending institution.
Not applicable.
Not applicable.
How are proposals selected?
Not applicable.
How may assistance be used?
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 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 (with exceptions to $50,000 for properties located in Opportunity Zones). 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.
What are the requirements after being awarded this opportunity?
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.
Other Assistance Considerations
Formula and Matching Requirements
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.
Length and Time Phasing of Assistance
The construction period is generally 6 months. The mortgage term may extend for 30 years.
Who do I contact about this opportunity?
Regional or Local Office
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 or visit the FHA Resource Center site at
Headquarters Office
Kevin Stevens
451 7th Street, SW
Washington, DC 20410 US
Phone: (800) 225-5342
Website Address
Financial Information
Account Identification
(Guaranteed/Insured Loans) FY 22 FY 23 FY 24 Estimate Not Available FY 21 FY 20 FY 19 FY 18 - Reported under 14.117
Range and Average of Financial Assistance
The average mortgage amount is approximately $200,000. There is no minimum mortgage amount. The maximum mortgage amount varies based upon property location. Maximum amounts fore each area are published annually.
Regulations, Guidelines and Literature
Not applicable.
Examples of Funded Projects
Not applicable.


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