Florida Mortgage Specialists

386-679-7436

Rehab a Home w/HUD's Florida FHA 203(k) Mortgages

The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.

The Florida FHA 203(k) Mortgages 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 Florida FHA 203(k) Mortgages 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 Florida FHA 203(k) Mortgages 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 Florida FHA 203(k) Mortgages 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 Florida FHA 203(k) Mortgages 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 Florida FHA 203(k) Mortgages 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 Florida FHA 203(k) Mortgages is an excellent product for use with CRA-type lending programs.