FHA 203k Report

The FHA 203k report is The FHA Minimum Standards (MPS) Report. It is the first step in getting a 203k loan to rehabilitate a building. There are certain minimum standards for buildings constructed under HUD housing programs. That includes new single-family homes, multi-family housing and health care-type facilities.

HUD no longer maintains separate Minimum Property Standards (MPS) for different types of structures. That’s because model building codes typically focus on structural integrity, fire safety, and accessibility. It has now accepted the model building codes, including over 250 referenced standards, and local building codes since the 1980’s.

The durability requirements HUD maintains is one major difference between the MPS and other model building codes. The reason is that their lack of durability can increase FHA’s financial risk in the event of loan default. Afterall, homes and projects financed by FHA-insured mortgages are the collateral for these loans.

The model codes don’t contain minimum requirements for the durability of many of the building components. Those components include doors, windows, gutters, painting, cabinets, carpeting and other systems and components. However, the MPS includes minimum standards for these, and other items. That is to ensure that the value of an FHA-insured home is not reduced by the deterioration of these components.

At Wildcat Inspections, we perform inspections and can use with the FHA 203k Report to provide our services with an economical price that will fit your budget.