Washington Report

Advocacy Updates from Washington D.C.

NAR Calls for Expansion of FHA’s 203(k) Program

January 9, 2012

Moe Veissi, the 2012 President of the National Association of Realtors, sent a letter (PDF) to Shaun Donovan, Secretary of Housing and Urban Development (HUD) requesting that investors be permitted to participate in the Federal Housing Administration’s (FHA) Section 203(k) Rehabilitation Mortgage Insurance Program to purchase vacant and foreclosed properties in need of significant rehabilitation. Amending the 203(k) Program will help restore vibrant housing markets and neighborhoods across the country and people will be put to work fixing these homes.

FHA’s 203(k) Program allows homebuyers and homeowners to a) purchase a house including the cost of its rehabilitation through a single mortgage, or b) finance the rehabilitation of their existing home. Section 203(k) fills a unique and important need for homebuyers in another way as well. Section 203(k) insured loans save the borrower’s time and money, and also protect lenders by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.

Read the letter (PDF)

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.