source:
  type: guide
  id: hud-4000-1-ii-c-standard-203-k-and-limited-203-k-rehabilitation-mortgages
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Standard
    203(k) and Limited 203(k) Rehabilitation Mortgages (09/14/2015)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Standard
    203(k) and Limited 203(k) Rehabilitation Mortgages (09/14/2015).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-c-standard-203-k-and-limited-203-k-rehabilitation-mortgages-full
  canonical_id: hud-4000-1-ii-c-standard-203-k-and-limited-203-k-rehabilitation-mortgages-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Standard
    203(k) and Limited 203(k) Rehabilitation Mortgages (09/14/2015)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Standard
      203(k) and Limited 203(k) Rehabilitation Mortgages (09/14/2015)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'c. Standard 203(k) and Limited 203(k) Rehabilitation Mortgages
      (09/14/2015) The Appraiser may be asked to perform two separate types of valuation
      by the Mortgagee for Standard 203(k) and Limited 203(k) Rehabilitation Mortgages.
      The Mortgagee may order both reports from the same Appraiser or select two different
      Appraisers for the two valuation assignments. If a Mortgagee requires both an
      as-is and an after-improved value of the Property, the case will require two
      separate appraisal assignments and reports: • an analysis to provide the as-is
      value; and • a separate analysis performed under the hypothetical condition
      that the repairs have been completed. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages
      11. Programs and Products Handbook 4000.1 868 Last Revised: 11/26/2025 i. Appraisal
      of the Property “As Is” (A) Standard Assignment conditions for this appraisal
      are the same as in all FHA appraisal assignments, except that the value of the
      Property is to be estimated “as is” even though the Property may not meet the
      Property Acceptability Criteria required for FHA-insured Properties. (B) Required
      Analysis and Reporting The Appraiser must provide an analysis and report of
      the value of the subject Property “as is.” If the Appraiser observes property
      conditions that do not meet the Property Acceptability Criteria, the Appraiser
      must report those items or conditions and note that the Property, in its “as
      is” condition, does not meet the Property Acceptability Criteria for an FHA-insured
      Mortgage. This appraisal must not be rendered “subject to repairs.” ii. After
      Improved Value of the Property (A) Definition After Improved Value refers to
      the value as determined by the Appraiser based on a hypothetical condition that
      the repairs or alterations have been completed. (B) Standard The Appraiser must
      provide an “After Improved Value.” The Appraiser must make the appraisal “subject
      to the following repairs or alterations on the basis of a hypothetical condition
      that the repairs or alterations have been completed.” (C) Required Analysis
      and Reporting The Appraiser must review the 203(k) Consultant’s Work Write-Up
      or the contractor’s proposal and Cost Estimates. The Appraiser must notify the
      Mortgagee of any health and safety issues in the Property that are not addressed
      in the Work Write-Up or proposal. When the Consultant or contractor has modified
      the Work Write-Up or proposal, the Appraiser must complete the appraisal based
      on the final Work Write-Up or the contractor’s final proposal and Cost Estimates.
      The Appraiser must include the Work Write-Up or proposal as an exhibit to the
      appraisal report. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT D. Appraiser
      and Property Requirements for Title II Forward and Reverse Mortgages 11. Programs
      and Products Handbook 4000.1 869 Last Revised: 11/26/2025'
  judgment: false
