FHA wants to hear from the public on ways to improve its Single Family 203(k) Rehabilitation Mortgage that rolls home upgrade costs into a buyer’s first mortgage.
WASHINGTON – The Federal Housing Administration (FHA) published a Request for Information (RFI) in the Federal Register seeking public comments on ways it can enhance its single-family 203(k) Rehabilitation Mortgage insurance program.
The 203(k) program allows buyers or current owners to get an FHA-insured loan that includes both the current value of the home plus planned rehabilitation costs. Based on the Biden-Harris Administration’s goal to increase the supply of quality affordable housing, FHA plans to update the program.
“FHA would like to offer improved options to finance the purchase or refinance of a home that needs significant rehabilitation,” explains Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. “Feedback from today’s RFI will help us advance our goals to increase housing supply, reduce vacancy and blight, and expand homeownership opportunities in all communities.”
FHA’s 203(k) program currently offers two options:
- The Standard 203(k) Mortgage, used for remodeling and major repairs, has a minimum repair cost of $5,000 and requires the use of a 203(k) Consultant.
- The Limited 203(k) Mortgage, used for minor remodeling and non-structural repairs, has a maximum repair cost of $35,000 and does not require the use of a 203(k) Consultant.
FHA encourages all interested parties to submit comments by the April 17, 2023, deadline.
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