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.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Agency: Department of Housing and Urban Development
Office: Office of Housing-Federal Housing Commissioner
Type(s) of Assistance Offered
Program Accomplishments
Not Applicable.
National Housing Act, as amended, 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. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Application is submitted through a HUD-approved lending institution.
Award Procedure
See Application Procedure.
Not Applicable.
Approval/Disapproval Decision Time
The lender or HUD will state the reason for refusing an application. The applicant may reapply subject to concurrence of the lender.
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 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 Streamlined (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.
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 formulas are not applicable to this program.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
The mortgage term may extend for 30 years. Method of awarding/releasing assistance: quarterly.
Who do I contact about this opportunity?
Regional or Local Office
None. 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
Wanda L. Sampedro 451 7th Street, SW, Washington, District of Columbia 20410 Email: Phone: (800) 225-5342
Website Address
Financial Information
Account Identification
86-4587-0-3-371 - FY 2010 and future.
(Sale, Exchange, or Donation of Property and Goods) FY 14 Not Separately Identifiable(Exp: Reported under 14.117); FY 15 Not Separately Identifiable(Exp: Reported under 14.117); and FY 16 Not Separately Identifiable - Reported Under 14.117.
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines and Literature
Not Applicable.
Examples of Funded Projects
Not Applicable.


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