The Section 203(k) program is the Department's primary program
for the rehabilitation and repair of single family properties. As such, it is
an important tool for community and neighborhood revitalization and for
expanding homeownership opportunities. Since these are the primary goals of
HUD, the Department believes that Section 203(k) is an important program and
we intend to continue to strongly support the program and the lenders that
participate in it.
Many lenders have successfully used the Section 203(k) program
in partnership with state and local housing agencies and nonprofit
organizations to rehabilitate properties. These lenders, along with state and
local government agencies, have found ways to combine Section 203(k) with
other financial resources, such as HUD's HOME, HOPE, and Community
Development Block Grant Programs, to assist borrowers. Several state housing
finance agencies have designed programs, specifically for use with Section
203(k) and some lenders have also used the expertise of local housing agencies
and nonprofit organizations to help manage the rehabilitation processing.
The Department also believes that the Section 203(k) program
is an excellent means for lenders to demonstrate their commitment to lending
in lower income communities and to help meet their responsibilities under the
Community Reinvestment Act (CRA). HUD is committed to increasing homeownership
opportunities for families in these communities and Section 203(k) is an
excellent product for use with CRA-type lending programs.
If you have questions about the 203(k) program or are interested in getting
a 203(k) insured mortgage loan, we suggest that you get in touch with an
FHA-approved lender in your area or the Homeownership Center in your area.
