To be eligible, a Wholesale account must be HUD Approved or and sponsored by an Agent.
30 Year Fixed Rate Mortgages
This program is designed by the United States Department of Housing and Urban Development (HUD) for the rehabilitation of a primary residence. Section 203(k) insurance enables homebuyers and homeowners to finance either the purchase or a refinance of a house and the cost of its rehabilitation through a single mortgage.
Available in CT, DC, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT and WV.
For CT “Nonprime” loans, restrictions apply; please see CT State law for specific requirements.
NY “Subprime” loans are not permitted
The following borrower types are eligible:
U.S. Citizens residing within the U.S
Permanent Resident Aliens
Non-Permanent Resident Aliens
Non-Occupant Co-Borrowers (Maximum LTV is 75% for unrelated borrowers. If borrowers are related by blood, the LTV can exceed 75% for one-unit properties only)
The following borrower types are ineligible:
The following property types are eligible and must conform to HUD guidelines:
1-4 unit and PUD primary residences
Must be FHA approved via HRAP or DELRAP. To search for HRAP and DELRAP approved condos, refer to
Appraisal must be completed on URAR 1004
Interior rehabilitation only (no common areas)
Standard homeowners hazard insurance is required
Master insurance policy
Modular / prefabricated homes
Properties eligible under section 223(e)
Properties with Oil or Gas leases HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards. However, luxury items and improvements that do not become a permanent part of the property are not eligible for the use of a 203(k) loan.
Subordinate Financing – HUD allowable non-profit down payment assistance grants are permitted.
203(k) Limited - The Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before moving-in.
Ineligible Property - Multi family HUD REO and Mixed-use properties are ineligible.
Allows for a 3/2/1 buy down plan. P&I payments may not increase more than 7 ½% per year.
If the borrower has owned the property less than one year, the acquisition cost must be used to determine the maximum mortgage amount.
The maximum loan amount includes any financed rehabilitation amount.
The minimum repair cost threshold is not applicable.
The maximum rehab amount is $35,000.
NO Contingency reserve requirement. (May be added at underwriter’s discretion.)
Eligible Work Items:
Repair/Replacement of roofs, gutters and downspouts.
Repair/Replacement/upgrade of existing HVAC systems.
Repair/Replacement/upgrade of plumbing and electrical systems.
Repair/Replacement of existing flooring.
Minor remodeling, such as kitchens, which does not involve structural repairs.
Weatherization: including storm windows and doors, insulation, weather stripping etc.
Purchase and installation of appliances, including freestanding ranges, refrigerators, washers/dryers, dishwashers
and microwave ovens.
Accessibility improvements for accessibility for persons with disabilities.