Policy Updates on FHA 203(k) Draw Limits and Correspondent Guidelines Under FHA ML 2026-06

Applies to: Correspondent mortgages executed via remote online notarization, along with designated state housing agency loan programs.

What to review: Review delivery workflows to ensure complete audit trails are included for remote online notarization closings starting August 3, 2026, while updating underwriting guidelines for CalHFA product removal, the CHFA 620 credit score floor, and condominium review limitations. AWACS interpretation

Applies to: FHA Section 203(k) Rehabilitation Mortgage Insurance Program transactions, including Limited 203(k) and Standard 203(k) mortgages.

What to review: Review the updated 203(k) draw administration flexibility permitting up to four draw requests per contractor with up to two disbursements each on Limited 203(k) loans and clarifying multiple disbursements per draw on Standard 203(k) loans. AWACS interpretation