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What types of repairs and/or modifications are acceptable for an FHA 203(k) Loan?

April 26, 2017acceptable FHA k loan modifications repairs types

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What types of repairs and/or modifications are acceptable for an FHA 203(k) Loan?

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Any repairs/improvements/modifications/modernizations that add value to and/or improve the property are acceptable for an FHA 203(k) Loan. The improvements must comply with HUD’s Minimum Property Standards (24 CFR 200.926d and/or HUD Handbook 4905.1) and all local codes and ordinances. Structural modifications and any work in excess of $35,000 are NOT allowed for the FHA 203(k) Streamlined Loan, but the FHA 203(k) Standard/Full version does allow for structural modifications and for work in excess of $35,000. Luxury items such as outdoor Kitchens/BBQ’s, Gazebos, outdoor spas/jacuzzis, etc. are not allowed for any 203(k) loan. However, limited pool repair is allowed under both versions of the FHA 203(k) loan (max $1,500-subject to lender approval).