Other Industry Partners
Local Governments - (Top)
FHA's direct sales programs allow local governments and qualified nonprofit organizations to purchase homes at a discount. These programs are referred to as Dollar Homes and sales to nonprofits.
The Dollar Homes initiative helps local governments to foster housing opportunities for low to moderate income families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each. Dollar Homes are single family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Properties are made available through the program whenever FHA is unable to sell the homes for six months.
By selling vacant homes for $1 after six months on the market, HUD makes it possible for communities to fix up the homes and put them to good use at a considerable savings. The newly occupied homes can then act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area.
Local governments can partner with local nonprofit homeownership organizations or tap into existing local programs to resell the homes to low- and moderate-income residents of the community.
To find out if properties are available for sale in your community, visit What are HUD Homes and click on your state. Follow directions to sign-up to use the website, if required.
Handbooks for Consultants and Inspectors - (Top)
FHA inspectors and 203(k) consultants must review the references below before submitting an application to be placed on the FHA roster.
Minimum Property Standards 4910.1
Architectural Processing and Inspection for Home Mortgage Insurance 4145.1
Procedures for Approval of SF Proposed Construction 4135.1
Requirements for 1-4 Family Existing Housing 4905.1
203(k) Rehabilitation Mortgage Insurance 4240.4
How to Become an Approved 203k Consultant - (Top)
Application Process
To apply for placement on the FHA 203(k) Consultant Roster, an applicant must submit the information listed below to the HOC in the area in which he/she will be conducting business. Please see HUD Mortgagee Letter 2000-25 for more information.
The application information should be submitted in the following format. A list or resume documenting:
- A minimum of three years experience as a remodeling contractor, general contractor or home inspector. A state license as a state certified engineer or architect may be submitted in lieu of the documentation of the three years experience;
- Education;
- Licensing (general contractor, home inspector, etc.). In those states where a Home Inspector is required to be licensed, the Department requires the applicant to be licensed and to provide proof of that licensing;
- A narrative description of the current/prospective consultant's ability to perform home inspections, prepare architectural drawings, use proper methods of cost estimating and complete draw inspections; and,
- The applicant must also submit a certification verifying that the consultant has read and fully understands the requirements of HUD Handbook 4240.4, REV 2 (203(k) Handbook) and all related materials listed in Mortgagee Letter 2000-25.
Future Program Enhancement
To further evaluate the 203(k) consultant's program knowledge, the Department will soon develop a formal examination process similar to the test FHA appraisers must now complete. The Department will issue additional guidance about this examination in the near future.
Incomplete Application Packages
An individual who submits an incomplete application package (defined above in the section entitled "application process") will receive a letter indicating the information required to cure the deficiency. This letter will give the individual 15 days to correct any deficiencies. If the response does not satisfy the outstanding requirement in its entirety and within the prescribed deadline, the individual must wait an additional 90 days prior to re-applying.
Application Approval or Denial
FHA will approve or deny the consultant's application to be listed on the FHA 203(k) Consultant Roster, based upon the information submitted. Inclusion of a consultant on the list means only that the consultant has met the qualifications prescribed by FHA for placement on the Roster; it does not create or imply a warranty or endorsement by FHA of the consultant, nor does it represent a warranty of any work performed by the consultant. If a consultant already on the Roster is found to not be in compliance with requirements of the 203(k) program, the consultant may be removed from the roster.
Participation Letters and Consultant Identification Numbers
Each applicant who meets the 203 (k) program requirements will be issued a participation letter. This letter will contain the consultant's name, business address and a consultant identification number. This number will be needed by the consultant prior to doing any work associated with any 203(k) loan. This consultant identification number will be used to assist the Department in evaluating the work of consultants. Mortgagees must enter the consultant's identification number on the insurance application screen and will not be able to process 203(k) cases without it.
Each consultant will be provided with only one participation letter. After the letter is mailed, mortgagees, consultants and others can verify that the consultant has been placed on HUD's 203k consultant roster.
203k Mortgagee Letters - (Top)
92-33 Modifications to the 203(k) Rehabilitation Program Procedures
93-13 Single Family Energy Efficient Mortgage Pilot Program
94-11 Revisions to 203(k) Rehabilitation Mortgage Insurance Program
95-40 Revisions to SF 203(K) Rehab Mortgage Insurance Program
95-46 Expansion of the Energy Efficient Mortgage Program
96-18 Refinances, Property Inspections and other Issues
96-21 Using 203(k) Mortgage Insurance with Grant Programs
96-23 SF Seven-Unit Limitation on FHA Insured Mortgages
96-52 Non-profit Agencies as Mortgagors
96-59 Moratorium on Investor Loans
97-05 203(k) Revised Escrow Commitment Procedure
97-25 Submission of Single Family Claims via Electronic Data Interchange (EDI)
98-02 Rehab Engy Gdlns to the Section 203(k) Rehabilitation (MIP)
98-11 203(k) Underwriting, Loan Processing and Administration
98-29 Mortgage Calculation Simplification
98-31 Mortgage Calculation Simplification Extension of Use of form HUD-92900-WS
00-01 Impact of New EPA Lead Hazard Regulations on 203(k) Rehabilitation
00-04 FHA Mortgage Insured Financing for the Construction of Storm Shelters
00-08 Nonprofit Agency Participation in Single Family FHA Activities
00-25 203(K) Rehabilitation Mortgage Program- 203k Consultant Roster
00-27 Appraising and Financing HUD Real Estate Owned Properties
04-29 Establishment of the Federal Housing Administration (FHA) Inspector Roster
05-19 Streamline K limited repair program
05-50 Enhancements to streamline K limited repair program
FHA Inspectors - (Top)
How to become FHA-approved
Application for Inspector Roster
Search Inspector Roster
Compliance Inspection Report
Program Guidance
Revisions to FHA Protocol (ML 2005-48)
Additional Resources - (Top)
For additional information, you may:
- Search faq.fha.gov. Our online knowledge base helps you find answers 24/7 (HUD staff can search hud.custhelp.com)
- Email hud@custhelp.com or
- Phone: 800-CALL-FHA or (800-225-5342) Monday-Friday, 8 am to 8 pm ET
- TDD: 877-TDD-2HUD or (877-833-2483)
