Compliance Calendar

Purpose -This Mortgagee Letter (ML) implements updates to the Section 203(k) program guidelines, which are intended to reduce barriers to using the program.

Effective Date - The provisions of this ML must be implemented for FHA case numbers assigned on or after November 4, 2024. All updates will be incorporated into a forthcoming update of the HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook (Handbook 4000.1).

Affected Programs - The provisions of this ML apply to applicable Section 203(k) program transactions.

This Guide Bulletin announces:

• Income underwriting and documentation requirements

➢ Updates to income underwriting and documentation requirements related to:

• Self-employed income – November 8, 2024

• Income from non-arm’s length employment – November 8, 2024

1. Purpose. The purpose of this Circular is to announce an update to the current VA funding

fee rate table applicability dates to conform with Public Law 118-19.

2. Therefore, Circular 26-23-6 is changed as follows:

Page 1, paragraph 3: Delete “November 14, 2031” and replace with “November 15, 2031”.

Exhibit B: Delete “November 14, 2031” and replace with “November 15, 2031”.

3. Rescission: This Circular is valid until rescinded.