The FHA 203K program is ideal for homes in need of repair.

Eligible improvement that you can do to a HUD home.

Think practical when it comes to the improvements you can make under the 203K program. High end luxury items and non-fixture (attachments) improvements to the home are not allowed.

Under the 203K program, the homeowner can finance such improvements as room additions, painting, exterior decks and other items that may improve the existing home. Keep in mind that there is a $5,000 requirement budget for these improvements in order to qualify under the 203K program.

Eligible improvements

1. Minor structural improvements to the home, such as foundation leak repair, basement renovation, finished attics, and repairing termite damage.

2. A new garage will qualify under the program.

3. Improved household functions, such as remodeled kitchens, bath rooms, new appliances.

4. Correction of any health or safety hazards, such as the removal or remediation of lead based paint.

5. Improvement of the aesthetics of the property such as new exterior siding, replace of doors, etc.

6. Replacement of carpeting, flooring and tile.

7. Improvement to the mechanical systems of the home, such as the plumbing, electrical, heating and air conditioning systems.

8. Site improvements and landscaping, such as retaining walls, decks and patios.

9. Repair or installation of property services, such as well and septic systems..

10. Roofing, gutters and downspouts can be repaired or replaced.

11. Energy conservation improvements such as insulation, doors, windows, caulking and weather stripping.

Eligible improvements under the 203K rehabilitation program must begin within 30 days of execution of the Rehabilitation Agreement. The improvement work cannot cease for more than 30 consecutive days. All improvements must be completed within 6 months of the agreement. The budget for the improvements cannot be higher than what had been approved as part of the original 203K rehabilitation loan amount. It’s in your best interest to utilize a competent contractor offering a firm contract price for these improvements helping you to avoid having to pay for any overage out of pocket.
 

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