WBK Industry News - Federal Regulatory Developments

FHA Requests Input on its 203(k) Rehabilitation Mortgage Insurance Program

The Federal Housing Administration (FHA) is requesting public comments on the Single Family 203(k) Rehabilitation Mortgage Insurance Program (Program) through a recent request for information (RFI).  As noted in the RFI, FHA seeks to enhance the Program by reducing barriers to originating mortgages under the Program and improving the Program and its policies. 

The Program provides FHA mortgage insurance covering a home’s current value plus rehabilitation costs in a single loan for those purchasing or refinancing a home.  The Standard 203(k) Program is for major repairs over $5,000 and requires a 203(k) Consultant.  The Limited 203(k) Program allows for repairs of less than $35,000 (more in Qualified Opportunity Zones).  FHA considers the Program an important tool for community revitalization and expanding homeownership opportunities. 

FHA outlines fifteen specific information requests in the RFI regarding the Program.  Some of these requests include: information on how FHA can increase participation in the Program, recommendations to increase awareness of the Program, any needs not served or underserved by the current Program, and changes needed to encourage more nonprofits to use the Program.

Comments are due by April 17, 2023.