Homebridge is making updates to our FHA 203(k) Standard and Limited renovation programs as detailed below.
203(k) Standard Program Updates
- The maximum repair costs will now be limited to $200,000 (previously repair costs were only subject to the maximum mortgage amount not exceeding the FHA mortgage area where the property is located)
- Repair costs of $75,001 to $200,000 will require a 6-month builder risk policy for direct hard costs (previously ≥ $100,000 required 12 month policy)
- The financing of up to 6 months PITI payments when the property will be uninhabitable during renovations is no longer allowed
203(k) Limited Program Updates
- Transactions with repair costs > $15,000 to $35,000 will now require a HUD Consultant to complete and provide one of the following (new; previously only required for self-help or 3-4 unit transactions):
- A Feasibility Study, OR
- A Work Write-Up (aka Statement of Repairs or Statement of Work)
203(k) Standard and Limited Disclosure Update
- The Homeowner/Contractor Certification disclosure is no longer required
NOTE: The disclosure update is effective immediately and may be applied to pipeline transactions
Buydowns: 203(k) Standard and Limited Programs
- Buydowns are now eligible on both Standard and Limited
- 1/0, 1/1, 1/1/1, 2/1, or 3/2/1 buydown eligible
- Fixed rate only
- Seller, Realtor, or Lender funded only
The 203(k) Standard and Limited guidelines have been updated and posted on the Products and Guidelines page on the Homebridge website.
Except as noted above, these updates are effective for new submissions as of June 26, 2023.
If you have any questions, please contact your Account Executive