FHA 203k Loan Primary Residence rules during rehab

[Devin Collins]

I understand the FHA 203k allows one to buy a Primary residence with a low downpayment and wraps the rehab costs into the loan. My question is what are the rules regarding the timeline to begin living in the home after the rehab?

I am in a year long lease that'll end in July of next year and would still love to be able to take advantage of this loan. Would it be possible to purchase a home in say April of next year and because of the rehab not move in until July?

Thanks in advance!

[Paul Welden]

@Michael Noto that is NOT correct. The standard 203k allows 6 months to complete the rehab but there is NO timeline for when the borrowers must physically move into the property. 

@Devin Collins there is no timeline or specified date when the borrower must physically move in to the property for an FHA 203k loan.

Reference HUD SFR Handbook 4000.1

@Corey White there are some lenders that have altered their rehab loans, such as Flagstar, which has temporarily suspended the Standard 203k but is still doing the Limited 203k. Other banks have stopped 203k correspondent channels but most other banks/lenders are full steam ahead on the 203k.