Mortgagee Letter 2024-13
In July 2024, HUD announced changes to the FHA 203k Loan, effective November 4, 2024.
Below are some of the major changes that will affect the 203k starting on November 4, 2024.
LIMITED 203K
- max rehab will increase to $75,000 (currently at $35,000);
- will allow 9 months to complete the rehab (currently 6 months)
- will allow 203k Consultant fees to be financed (currently not allowed)
- will allow the property to be uninhabitable for 30 days (currently 15 days)
STANDARD 203K
- will allow 12 months to complete rehab (currently 6 months)
- will allow 12 months of mortgage payments to be financed (currently 6 months)
203K CONSULTANT
- 203k Consultant fees will increase (1st time since 1995)
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- Feasibility Study fee will be $375
- Draw Inspection Fee will be $375
- Re-Inspection fee will be $225
- WWU fees will be:
- $1,000 for cost estimates up to $50,000
- $1,200 for cost estimates $50,001 - $85,000
- $1,400 for cost estimates $85,001 - $140,000
- $2,000 or 1% of cost estimate (whichever is lower) for cost estimates exceeding $140,000
- Cannot sub out the work to another person; the 203k Consultant listed in the Roster is the one required to do all of the work (Inspection, WWU, Draw Inspections, Change Orders, etc.)
Read and download the document below to learn more about these changes.
Remember to LOGIN to your portal to see the new Certified 203k Contractor® Training Manual, new 203k Education Sessions, and new 203k Test.
HUD Mortgagee Letter 2024-13