HUD 232 Substantial Rehabilitation

What Qualifies as Substantial Rehabilitation for HUD 232 Loans?

What Qualifies as Substantial Rehabilitation for HUD 232 Loans?

In order to qualify for a HUD 232 loan for substantial rehabilitation, a project must meet one of two major requirements. Either the hard cost of any repairs and improvements must exceed 15% of the project's value after completion, or two or more major building components (ex. plumbing, electrical, roof) must be substantially replaced.