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Section 203k Rehabilitation Mortgage Insurance

Loan/Loan Repayment > Section 203k Rehabilitation Mortgage Insurance

 

Program Description:

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first in order to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.

 

General Program Requirements:

To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. Cooperative units are not eligible.

 

Status

Active

 

Loan Terms:

Please contact an FHA-approved lender for loan term information. To find an approved lender, please visit:
http://portal.hud.gov/portal/page?_pageid=73,1827603&_dad=portal&_sche...

 

Application Process:

To apply, please contact a FHA-approved lender:
http://www.hud.gov/ll/code/llplcrit.html

 

Program Contact Information:

Please visit the Rehabilitation Mortgage Insurance website at the following location for further information:
http://www.hud.gov/offices/hsg/sfh/203k/203kmenu.cfm

You may also contact our FHA Resource Center at:
http://www.hud.gov/offices/hsg/sfh/fharesourcectr.cfm

Or call: 1-800-CALL-FHA (225-5342)

 

Managing Agency:

U.S. Department of Housing and Urban Development
http://www.hud.gov/




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