The Limited 203(k) Rehabilitation Mortgage Insurance Program will now be available in federally designated Opportunity Zones, and with more to loan than in the previous iteration of the program.

The Federal Housing Administration (FHA) will offer a new incentive for borrowers interested in rehabilitating homes in Opportunity Zones, according to a U.S. Department of Housing and Urban Development (HUD) announcement late last week.
To achieve its goals of increased housing rehabs, the FHA will expand its Limited 203(k) Rehabilitation Mortgage Insurance Program to homes located in Opportunity Zones.
"Beginning December 16, homebuyers seeking to purchase a home in a qualified Opportunity Zone can use the Limited 203(k) program to finance rehabilitation costs up to $50,000 into the total mortgage amount," according to the release. The rehab maximum amount in Opportunity Zones is larger than currently allowed through the program for single-family homes not located in Opportunity Zones. "Existing homeowners with homes in Opportunity Zones can also use the larger allowable rehabilitation amount when refinancing to rehabilitate their existing homes," adds the release.

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