source:
  type: regulation
  id: hud-4000-1-ii-a-8-203k
  authority: HUD Handbook 4000.1 Part II.A.8.a — Section 203(k) Rehabilitation Mortgage Insurance Program
  description: 'HUD Handbook 4000.1 Part II.A.8.a governs Section 203(k)

    Rehabilitation Mortgage Insurance — Standard 203(k) (min $5,000

    repair cost; 203(k) Consultant required) and Limited 203(k) (max

    $75,000 rehab cost; Consultant optional). Mortgages must follow

    Origination-through-Post-closing requirements except where 203(k)-

    specific overrides apply. Property must be at least 1 year old as

    of case-number assignment, and Property with existing 203(k) cannot

    be refinanced until all repairs are completed and the case is

    electronically closed out. Fills HUD 4000.1 Part II.A.8 chapter gap.

    '
obligations:
- id: hud-4000-1-ii-a-8-203k-full
  canonical_id: hud-4000-1-ii-a-8-203k-full
  section: HUD Handbook 4000.1 Part II.A.8.a
  description: "Programs and Products - 203(k) Rehabilitation Mortgage Insurance Program: 8. Programs\
    \ and Products \na. 203(k) Rehabilitation Mortgage Insurance Program (04/10/2025) \nThe Section 203(k)\
    \ Rehabilitation Mortgage Insurance Program is used to: \n• rehabilitate an existing one- to four-unit\
    \ Structure, which will be used primarily \nfor residential purposes; \n• rehabilitate such a…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 II.A.8.a.i — 203(k) Overview
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
    snapshot_id: 3bf33edadcf6461d
    fetched_at: '2026-05-25T14:10:11Z'
    content_hash: sha256:e1c2dc1c75ddb0ee32fe5c2fb7c9bb19f1c93b48a3e26e6d63dc6e7f37c92ec0
    paragraph_quote: "8. Programs and Products \na. 203(k) Rehabilitation Mortgage Insurance Program (04/10/2025)\
      \ \nThe Section 203(k) Rehabilitation Mortgage Insurance Program is used to: \n• rehabilitate an\
      \ existing one- to four-unit Structure, which will be used primarily \nfor residential purposes;\
      \ \n• rehabilitate such a Structure and refinance outstanding indebtedness on the \nStructure and\
      \ the Real Property on which the Structure is located; \n• purchase and rehabilitate a Structure\
      \ and purchase the Real Property on which the \nStructure is located; or \n• rehabilitate the interior\
      \ space of an eligible Condominium Unit excluding any \nareas that are the responsibility of the\
      \ Condominium Association. \nStructure refers to a building that has a roof and walls, stands permanently\
      \ in one place, \nand contains single or multiple housing units that are used for human habitation.\
      \ For \n203(k) Rehabilitation Mortgage eligibility, a one-family dwelling unit in a multi-unit \n\
      Condominium Project may be considered a single-unit Structure and a townhouse in \ntownhouse-style\
      \ condominium may be considered a single-unit Structure provided each \ntownhouse-style unit is\
      \ separated by a one and one-half hour firewall from foundation to \nroof. \nMortgages to be insured\
      \ under Section 203(k) must be processed and underwritten in \naccordance with the requirements\
      \ in Origination through Post-closing/Endorsement, \nexcept where noted otherwise in this section.\
      \ \n(A) Types of 203(k) Rehabilitation Mortgages \nThere are two types of 203(k) Rehabilitation\
      \ Mortgages: Standard 203(k) and Limited \n203(k), as described below. The guidance in this section\
      \ is applicable to both \nStandard 203(k) and Limited 203(k) Mortgages unless noted otherwise. \n\
      (1) Standard 203(k) \nThe Standard 203(k) Mortgage may be used for remodeling and repairs. There\
      \ is a \nminimum repair cost of $5,000 and the use of a 203(k) Consultant is required. \n(2) Limited\
      \ 203(k) \nThe Limited 203(k) may only be used for minor remodeling and nonstructural \nrepairs.\
      \ The Limited 203(k) does not require the use of a 203(k) Consultant, but a \nConsultant may be\
      \ used. The total rehabilitation costs must not exceed $75,000. \nThe Limited 203(k) total rehabilitation\
      \ cost limit will be evaluated on an annual \nbasis in conjunction with the process undertaken for\
      \ the establishment of FHA’s \nNationwide Forward Mortgage Loan Limits. If it is determined that\
      \ an increase to \n\n \nthe Limited 203(k) loan limit is warranted, the new limit will be announced\
      \ \nconcurrent with the publication of the Nationwide Forward Mortgage Loan Limits \nannouncement.\
      \ \n(B) Eligible Supplemental Programs and Products \nA 203(k) Mortgage may be used in conjunction\
      \ with the following: \n• Energy Efficient Mortgages \n• Solar and Wind Technologies \nThe Borrower\
      \ must meet the eligibility requirements found in the Borrower Eligibility \nsection, and the additional\
      \ guidance provided here related to nonprofit agency Borrowers. \nThe Mortgagee must verify and\
      \ document the nonprofit agency Borrower’s caseload. The \nMortgagee must review the Nonprofit List\
      \ in FHA Connection (FHAC), and ensure the \nmaximum 203(k) case load limitation is not exceeded\
      \ for nonprofit Borrowers. \n(A) Rental Income Received from the Subject Property \nIf the subject\
      \ Property is a one-unit with an Accessory Dwelling Unit (ADU) and the \nBorrower does not have\
      \ a history of Rental Income from the subject Property since \nthe previous tax filing, to calculate\
      \ the Effective Income the Mortgagee must use 50 \npercent of the lesser of: \nMortgagees must apply\
      \ this requirement for both Mortgages underwritten through \nTOTAL Scorecard and manual underwriting.\
      \ \niii. Property Eligibility \nThe Property must be an existing Property that has been completed\
      \ for at least one year \nprior to the case number assignment date. If the Mortgagee is unsure whether\
      \ the \nProperty has been completed for at least one year, the Mortgagee must request a copy of\
      \ \nthe Certificate of Occupancy (CO) or equivalent. \nA Property that is not eligible for a 203(b)\
      \ Mortgage due to health and safety or security \nissues may be eligible under 203(k) if the rehabilitation\
      \ or repair work performed will \ncorrect such issues. \nA Property with an existing 203(k) Mortgage\
      \ is not eligible to be refinanced until all \nrepairs are completed and the case has been electronically\
      \ closed out."
    drafter_attestation: Verbatim section from snapshot 3bf33edadcf6461d; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
