FHA 203K Rehabilitation Continued

For further details, please refer to the FHA Underwriting & Eligibility Standards.

Acceptable Credit




> 620

> 620


> 620

< 620


> 620

No Score / No Derogatory References


> 620

No Score / With Derogatory References


Non-Profit Gift Programs – Not Permitted

Properties Listed for Sale – FHA/VA Refinances

Special Program Option

This special program still follows standard FHA Underwriting guidelines unless otherwise noted.  Refer to the respective mortgagee letters on AllRegs for more information on this option.

Property Disposition Program - Upon closing of a HUD-owned single-family property (PD Sale), FHA will allow purchaser financing and closing costs to be deducted from its proceeds.  The costs must be reasonable and customary in the jurisdiction where the property is located.

Application / Disclosure Requirements

Subject to full credit review, receipt of any FHA allowable assumption fees and subject to services guidelines.

Escrow Requirements

Refer to Section 400 - Secondary Policy and Procedures.

Mortgage Insurance Premium

Amount paid by the borrower for HUD to provide insurance on the loan.  Similar to private mortgage insurance, there is an upfront premium, which can be financed, and an annual premium based on term and LTV.



Mortgage terms of more than 15 years

Upfront Premium v

Annual Premium

Duration in Years

89.99% & Less




90.00 - 95.00%




95.01% & over




        at least 5 years (scheduled or actual).

NY Consolidation Extension and Modification Agreement (CEMA)
Permitted for fixed rate transactions only.  The parties have to be the same from the original loan to the new CEMA, unless a documented death or documented divorce with new deed is provided.

Operational Addenda and Exhibits

Prepayment Penalty
If loan is paid off on any date other than a scheduled payment date, interest may be charged through the last day for the month the payoff is made.

Pricing and Rate Locks

Refer to daily rate sheets

Settlement Instruments

We require the use of the standard FHA Note and Mortgage/Deed of Trust form for the state in which the property is located as well as the standard multi-state applicable riders for, condominiums, PUDs or multi-unit properties, if applicable.

Temporary Buydowns

Product Description and Product Codes

203(k) Renovation 30 Year Fixed


203(k) Renovation Buydown



203(k) Streamline 30 Year Fixed