Grants directory
Section 203(k) Rehabilitation Mortgage Insurance Program
U.S. Department of Housing and Urban Development · Federal program
One mortgage can cover purchase/refinance plus rehab; dollar cap not stated on the main page excerpt used here.
HUD’s 203(k) program lets homebuyers and homeowners finance purchase or refinance plus rehabilitation in one FHA-insured mortgage. It is a way to roll home repairs and improvements into mortgage financing.
Program details
How it works
Section 203(k) insures mortgages covering the purchase or refinancing and rehabilitation of a home that is at least a year old. HUD says a portion of the loan pays the seller or the existing mortgage, and the remaining funds are held in escrow and released when rehabilitation is completed.
What the money covers
The program is for rehabilitation and repair. HUD’s page says the 203(k) program can also be used with energy-efficient improvements and with Section 203(h) disaster-victim mortgage insurance.
Amounts and matching
HUD distinguishes Standard 203(k) for major rehabilitation and Limited 203(k) for less expensive repairs/improvements. A related HUD page says the cost of rehabilitation must be at least $5,000, and the total property value must still fall within the FHA mortgage limit for the area.
How to apply
Borrowers work with an FHA-approved lender. The program is available for eligible property types including single-family homes, two- to four-family units, townhomes, certain condos, manufactured homes titled as real estate, HUD-owned properties, and some mixed-use properties.
Timing and deadlines
No application deadline is stated on the page.
Full eligibility details
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