FHA issued a temporary policy waiver waiving the 15 day occupancy provision for Limited 203(k) loans secured by properties in Presidentially-Declared Major Disaster Areas (PDMDAs) related to Hurricanes Helene and Milton. Currently, when a repair is considered “major,” the repair is ineligible to be financed as part of the Limited 203(k) loan program if the repair prevents the borrower from occupying the property for more than 15 days. Under the temporary policy waiver, the 15 day occupancy provision is waived and a major repair is eligible to be financed as part of the Limited 203(k) loan program even if the repair prevents the borrower from occupying the property for more than 15 days. Note that, while the temporary waiver waives the 15-day occupancy provision, the requirement that at least 1 borrower reside in the property within 60 days remains the same. The temporary waiver applies to Limited 203(k) loans closed on or before August 31, 2025 secured by properties located in the PDMPDAs related to Hurricanes Helene and Milton.
Click to view the FHA Info #2024-71: https://www.tenaco.com/wp-content/uploads/2024/10/FHA-Info-2024-71.pdf
