Major Enhancements to FHA 203(k) Guidelines

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 1. Increased Renovation Financing Limits
The maximum allowable rehabilitation costs under the Limited 203(k) program have been increased from $35,000 to $75,000. This expansion allows investors to undertake more substantial renovations without the need for a 203(k) Consultant. ​

2. Extended Project Timelines
The allowable rehabilitation period for the Standard 203(k) program has been extended to 12 months, and for the Limited 203(k) program to 9 months. This extension provides investors with more time to complete projects, accommodating potential delays in permitting, material delivery, and labor shortages. ​

3. Financing of Consultant Fees
Under the Limited 203(k) program, investors now have the option to include the 203(k) Consultant fee in the total mortgage amount. This change reduces upfront costs for investors who choose to utilize a Consultant's expertise. ​

4. Increased Consultant Fee Allowances
The allowable fees that a 203(k) Consultant can charge have been updated, with increases designed to appropriately compensate Consultants for their role and encourage more participation in the program.