What is a 203K Rehab Loan?

203k Rehabilitation Mortgage Insurance

PowerSaver Pilot 203(k) Mortgage

FHA's PowerSaver Pilot 203(k) program  will allow eligible homeowners access to low-cost financing when they include energy saving upgrades with their home improvement project, under this new pilot program.  The pilot program expires May 4, 2015.

Streamlined 203(k) Mortgage

FHA's Streamlined 203(k) program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Homeowners can make property repairs, improvements, or prepare their home for sale.  Homebuyers can make their new home move-in ready by remodeling the kitchen, painting the interior or purchasing new carpet.

Find out more about the Streamlined 203(k) program by reading Mortgagee Letter 2005-50, Enhancements to the "Streamlined (K)" Limited Repair Program. The Streamlined K uses HUD-92700, the 203(k) and Streamlined 203(k) Maximum Mortgage Worksheet.

203(k) Mortgage

The Section 203(k) program is FHA's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization, as well as to expand homeownership opportunities.

Contact the FHA Resource Center for more 203(k) information.

reprinted from: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kmenu


Deborah Smith

Deborah Smith

Licensed Associate Real Estate Broker
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