Using the HUD 203(k) Mortgage Insurance Program to Reduce the Risk of Lung Cancer in People
The Section 203(k) mortgage financing program is the Housing and Urban Development’s (HUD) primary tool for rehabilitating and improving single family homes. The program allows home buyers to finance the purchase and repair or improvement of a home using a single mortgage loan.
Reducing radon levels in a home is an improvement that can be financed through a 203(k) mortgage loan. Part of the 203(k) mortgage proceeds must be used to pay the costs of rehabilitating or improving a residential property.
- To qualify, the total cost of the eligible repairs or improvements, including fixes to reduce radon levels, must be at least $5,000.
- The 203(k) program is an important tool for expanding home ownership, revitalizing homes, neighborhoods and communities and for making homes healthier and safer for those who occupy them.
Homes eligible for 203(k) financing include:
- one to four-family dwellings that have been completed for at least one year;
- dwellings that have been demolished, provided some of the existing foundation system remains; and,
- converting a one-family dwelling into a two, three, or four-family dwelling; or, alternatively, converting an existing multi-unit dwelling into a one to four-family unit.
The 203(k) program has been used successfully by many lenders to rehabilitate properties through partnerships with state and local housing agencies and with non-profit organizations. To further help borrowers buy homes, lenders have found innovative ways to combine the 203(k) program with other financial resources like HUD’s HOPE and Community Development Block Grant Programs.
Contact an FHA-approved lender in your area for more information about HUD’s 203(k) program, or if you are interested in getting a 203(k) insured mortgage loan. To find a lender, please use HUD’s Lender List (LINK).