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The US Federal Housing Association (FHA) currently administers several HUD home repair and rehabilitation schemes. These schemes are designed to help people and communities rehabilitate their homes, and are also intended as a way of increasing opportunities for home ownership.

The most extensive HUD rehabilitation program is known as Section 203(k), and is designed to provide families with a means of obtaining permanent financing for homes that require extensive rehabilitation. Lenders do not normally finance such homes, as the condition and value of such properties rarely matches up to the amount borrowed. In these situations, the borrower must get an interim loan, usually at a higher interest rate, to purchase the house, and then a second loan for money to do construction and rehabilitation work. Only when the house is complete can the borrower apply for a mortgage to pay off the existing loans.

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