February 14, 2023

HUD: FHA Seeks Input to Enhance Financing for Homes in Need of Rehabilitation

Request for Information published today seeks industry input on ways to enhance FHA’s 203(k) Rehabilitation Mortgage Insurance Program to support housing supply and affordability.

Today, the Federal Housing Administration (FHA) published a Request for Information in the Federal Register seeking public comments on ways it can enhance its Single Family 203(k) Rehabilitation Mortgage Insurance Program.

The 203(k) program enables those purchasing or refinancing a home to obtain FHA insurance on a mortgage that will cover the current value of the home plus rehabilitation costs. Consistent with the Biden-Harris Administration’s goals to increase the supply of quality affordable housing, FHA aims to update the program so that it can more effectively serve as a tool to restore single family homes in need of renovation to productive use.

“FHA would like to offer improved options to finance the purchase or refinance of a home that needs significant rehabilitation,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. “Feedback from today’s RFI will help us advance our goals to increase housing supply, reduce vacancy and blight, and expand homeownership opportunities in all communities.”

The 203(k) program currently offers two options:

FHA encourages all interested parties to submit comments by the April 17, 2023, deadline.

This post was originally published here.