FHA 203k Eligible Improvements

For all properties financed with a 203k loan, both the lender and FHA have repair requirements that must be addressed, in addition to the type and extent of work the borrower would like to complete.

FHA requires that properties financed under the 203k program meet certain basic energy efficiency and structural standards to comply with HUD's Minimum Property Standards and all local codes and ordinances.

FHA’s energy efficiency standards include correctly-sized heating and air conditioning systems, as well as the type and extent of caulking, insulation and ventilation. The home is also required to have smoke detectors adjacent to each sleeping area.

Eligible Improvements Under The Streamlined 203k

• Repair or replacement of roofs, gutters and downspouts
• Repair, replacement or upgrade of existing HVAC systems
• Repair, replacement or upgrade of plumbing and electrical systems
• Repair or replacement of flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Painting, both exterior and interior
• Weatherization, including storm windows and doors, insulation, and weather stripping
• Purchase and installation of appliances (free-standing ranges, refrigerators, washer/dryer...)
• Accessibility improvements for persons with disabilities
• Lead-based paint stabilization or abatement of lead-based paint hazards
• Repair, replacement or addition of exterior decks, patios, porches
• Basement finishing and remodeling, which does not involve structural repairs
• Basement waterproofing
• Window and door replacements and exterior wall re-siding
• Repair or replacement of septic system and/or well

Eligible Improvements Under The FHA 203(K)

• Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall
• New construction (including room additions)
• Repair of structural damage
• Repairs requiring detailed drawings or architectural exhibits
• Landscaping or similar site amenity improvements
• Any repair or improvement requiring a work schedule longer than six months
• Rehabilitation activities that require more than two (2) payments per specialized contractor

Streamlined 203k Vs. Full 203k

Properties that require these documents or services or that will take longer than six months to complete will also require the full, regular FHA 203k loan:

• A Consultant to develop a “Specification of Repairs/Work Write-Up”
• A plan reviewer, plans or architectural exhibits
• Any reason work might not begin within 30 days after loan closing
• The homeowner’s displacement from the property for more than 30 days during the time the rehabilitation work is underway

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