Pennymac Correspondent · Announcement 26-84 · Published

FHA Standard and Limited 203(k) Guideline Updates

Pennymac shared FHA updates for Standard and Limited 203(k) rehabilitation loans matching Mortgagee Letter 2026-06. The provisions clarify draw disbursement structures and raise the Limited 203(k) maximum draw threshold.

InformationalIn effect nowChecks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · verified

Applies to: FHA Standard and Limited 203(k) rehabilitation mortgages purchased by Pennymac.

Addressed to
Pennymac correspondent sellersFrom the publisher, not quoted from the text
Investor
PennymacFrom the publisher, not quoted from the text
Affected areas
Products; Renovation
Applicability confidence
Verified: every row taken from the source text is supported by it; rows marked "from the publisher" are not quoted

Summary by AWACS. Pennymac Correspondent's guide is proprietary, so AWACS does not reproduce its text. Read the official announcement ↗ (opens in a new tab)

What changed

Summarized from the announcement
RequirementPreviouslyNow
Permitted draw count on Limited 203(k) loansRelaxedNot statedUp to four contractor draw requests are now authorized.
Disbursement rules per draw on Standard 203(k) loansClarifiedNot statedMultiple disbursements within a single draw are explicitly permitted across up to five total draws.

What to do

AWACS interpretation · not source language

What to review: Review the updated 203(k) guidelines permitting up to four contractor draw requests on Limited 203(k) loans and clarifying multiple disbursements across up to five draws on Standard 203(k) loans.

QC implications

  • Sample Limited 203(k) loans utilizing up to four contractor draw requests to confirm compliance with updated draw limits.
  • Verify that Standard 203(k) files with multiple disbursements per draw do not exceed the five total draw limit.

Source and record

Version 1 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed, adjusted automatically

    Every quoted passage appears word for word in the official document.

    • A detail the source does not support was removed or adjusted
  • Requirements backed by the source: Passed

    Anything marked required is backed by the requirement language and dates in the source.

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed

    The record follows the AWACS format and uses its standard labels.