FHA 203k Rehab Eligible Properties

FHA’s 203k loan program can be used to finance a single family home, as well as 1-4 unit properties.

Following specific guidelines, it can also be used to convert a building from a larger number of units down to 4 or less, as well as improvements (interior only) on an FHA-approved condominium unit.

Although FHA 203k loans are only offered for owner-occupied properties, provisions allow for the financing of mixed-use buildings, such as those with retail or commercial space combined with residential. In these cases, the 203k loan can only be used for the residential portion of the building.

Projects For An FHA 203k Rehab Loan Inclue:

• 1-4 Unit Properties Family Homes
• Conversion of a larger number of units down to 4 or less
• Interior renovations on an FHA-approved condo (subject to specific guidelines)
• Renovation of the residential portion of a mixed-use building, which combines retail or commercial space with residential
• Uninhabitable properties (a “tear down”), as long as part of the existing foundation will remain
• Relocation of an existing house to a new foundation

*All properties are subject to specific guidelines.

Using FHA 203k To Purchase HUD Foreclosures:

FHA 203k loans can also be used to purchase HUD-owned foreclosures that have been designated by HUD as eligible for the 203k.

If an eligible HUD foreclosure has been purchased through other means, a 203k loan can be made up to six months after the close, and repair funds made available to the owner.