The Housing and Urban Development (HUD) through its agency the Federal Housing Administration (FHA) offers home owners opportunity to rehabilitate or repair their homes. This is accomplished through the Section 203(k) Program.
Homeowners with single family properties can benefit much from this program. It is helpful for expanding homeownership and rebuilding community and neighborhood revitalization, which is the main objective of the HUD.
The Section 203(k) Program allows homeowners to access funds for home improvements insured by the FHA. You must note that neither the HUD nor the FHA issues the funds to homeowners. There are FHA-approved lending institutions that give you the loan once it is guaranteed or insured by the HUD's section 203(K) Program.
Many states and local housing agencies have worked hand in hand with the approved lenders to successfully carry out the Section 203 (k) Program. Borrowers have benefited much from the program in combination with other HUD's Program. The HUD's programs such as HOPE, HOME, and Community Development Block Grant Programs are examples other financial resources that have helped homeowners in combination with the 203(k) plan. Equally, for the lending institutions, this program forms part of their Community Reinvestment Act (CRA).
The Department (HUD) uses this program to promote its commitment of issuing financial assistance to lower income communities. This is in addition to its primary objective of increasing home ownership for families. The Section 203(k) Program is a suitable means of keeping to its objectives.
This article is just a brief overview of the Section 203(k) Program for home improvement. You can access www.hud.gov. or the FHA for details about this smart programs you can avail.
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