FHA 203k Loan -
How the Loan Program Can Be Used:
The Standard FHA 203k Loan
The Department of Housing and Urban Development (HUD), administers various single family mortgage
insurance programs. These programs operate through FHA approved lending institutions who underwrite and close loans the meet FHA guidelines.
These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help
people buy homes.
The FHA 203k loan program is the Department's primary program for the rehabilitation and
repair of single family properties. Basically the fha 203k loan is a home improvement or rehab loan.
As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership
opportunities. Since these are the primary goals of HUD, the Department believes that the FHA 203-k loan is an
important program and they intend to continue to strongly support the program and the lenders that participate in
Lenders have successfully used the FHA 203k loan program in partnership with state and local housing
agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local
government agencies, have found ways to combine the FHA 203k loan with other financial resources, such as HUD's
HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance
agencies have designed programs, specifically for use with FHA 203k loan and some lenders have also used the
expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.
One of the uses of the program is for borrower to purchase a foreclosure and use the FHA 203k loan to provide the purchase
money as well as money for the repairs tha are needed.
Apply for you FHA 203k Loan