FHA 203(k) rehabilitation mortgage insurance program
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The FHA 203(k) rehabilitation mortgage insurance program is a U.S. government-backed loan option that allows homebuyers and homeowners to finance both the purchase (or refinance) of a property and the cost of its repairs or renovations into a single mortgage.
Aliases (4)
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
FHA-insured loan program
→
U.S. federal housing program → mortgage insurance program → |
| administeredBy |
Federal Housing Administration
→
U.S. Department of Housing and Urban Development → |
| allows |
financing of non-structural repairs under Limited 203(k)
→
financing of structural repairs under Standard 203(k) → |
| alsoKnownAs |
FHA 203(k) loan program
→
FHA rehab loan → |
| appliesToPropertyType |
one- to four-unit residential properties
→
principal residence → |
| basedOn |
Section 203(k) of the National Housing Act
→
|
| benefit |
access to financing for properties needing significant repairs
→
lower down payment compared to many conventional rehab loans → single closing for purchase or refinance and renovation → |
| country |
United States
→
|
| eligibleBorrower |
existing homeowner
→
homebuyer → |
| eligibleUse |
purchase and rehabilitation
→
refinance and rehabilitation → |
| excludes |
luxury improvements not adding value to the property
→
|
| feature |
FHA mortgage insurance protects lender against borrower default
→
allows financing of repairs and improvements based on after-improved value → requires property to meet FHA minimum property standards after rehabilitation → requires use of FHA-approved lender → single mortgage covers acquisition and renovation costs → |
| governedBy |
HUD 4000.1 Single Family Housing Policy Handbook
→
|
| hasVariant |
Limited 203(k)
→
Standard 203(k) → |
| loanType |
government-backed mortgage
→
owner-occupied residential mortgage → |
| prohibitsUse |
non-owner-occupied investment properties (with limited exceptions for mixed-use structures)
→
|
| purpose |
enable borrowers to combine purchase or refinance and renovation costs into a single mortgage
→
finance purchase and rehabilitation of residential properties → support neighborhood revitalization and home improvement → |
| regulates |
maximum mortgage amount based on FHA loan limits
→
|
| requires |
HUD consultant for certain larger projects
→
annual mortgage insurance premium → detailed work write-up or contractor bids → upfront mortgage insurance premium → |
| requiresOccupancy |
borrower must occupy property as primary residence
→
|
| riskMitigation |
spreads lender risk through FHA insurance fund
→
|
| supportsPolicyGoal |
expansion of homeownership
→
rehabilitation of aging housing stock → stabilization of distressed neighborhoods → |
| target |
borrowers with limited cash for separate renovation financing
→
|
| timeHorizon |
long-term, fixed-rate or adjustable-rate mortgage options
→
|
Referenced by (5)
| Subject (surface form when different) | Predicate |
|---|---|
|
FHA 203(k) rehabilitation mortgage insurance program
("FHA 203(k) loan program")
→
FHA 203(k) rehabilitation mortgage insurance program ("FHA rehab loan") → |
alsoKnownAs |
|
FHA 203(k) rehabilitation mortgage insurance program
("Standard 203(k)")
→
FHA 203(k) rehabilitation mortgage insurance program ("Limited 203(k)") → |
hasVariant |
|
FHA 203(b) basic home mortgage program
→
|
distinguishedFrom |