The 203K program is a HUD-sponsored purchase-renovation program in which one, all-inclusive loan serves to both acquire a real estate property and restore or upgrade the property.
These programs provide financing for foreclosures, "fixer-uppers" or rehabs and offer the opportunity to repair, update and customize the home to the buyers needs.The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. |
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These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding home-ownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and they intend to continue to strongly support the program and the lenders that participate in it. |
