The 203k Loan can be used for pool repair if it for health and safety purposes.

Yes, an FHA 203k loan can be used to repair a pool for health and safety standards.

This would include purchasing a home with an inactive pool and using the 203k loan for repairs such as fixing pool covers, tripping hazards, properly working filters, and other maintenance items that are required by FHA guidelines.

For example, the 203k can be used to fix a broken waterfall feature, but not to create a new one.

These pool repair changes were updated to the HUD Handbook 4000.1 for 203k guidelines (hud.gov/sites/documents/40001HSGH.PDF) to remove the $1,500 maximum repair limit.

Video Transcript
Alright everyone, welcome back to RenovateThis! Today we’re gonna do another real life experience. I had a client not that long ago ask us very simply “I’m looking to buy a home and there is a pool on the property and it hasn’t been operated in a while, and I’m not exactly sure what I should do about it. Am I able to use a renovation loan to fix that pool?” So there’s a couple different things to keep in mind here. The FHA 203K allows you to do repairs to a pool to get it up to health and safety standards. Back in the day, before the 4000.1 a couple years ago, you were limited to fifteen hundred dollars in repairs in order to get the pool up to health and safety standards. With the 4000.1 change, which is the HUD handbook, there is no limit anymore as to what the cost was. And there’s a good reason for that, right? In order to make a pool health and safety, get it up to health and safety standards, as simple as putting on a cover can cost more than fifteen hundred dollars. So the way that they updated it makes a lot more sense. Now, if somebody is looking to turn around and add a waterfall, or they’re looking to put in a jacuzzi, or they’re doing any of the stuff that comes along with a pool like this, we’re not gonna be able to put that in to an FHA 203K. But again, as long as it’s getting it up to health and safety standards which would include covers, getting the filter working right, making sure there aren’t any tripping hazards around the pool. Things like that that are gonna fall into that type of scenario, those things are gonna be allowed. And the best way to really focus on that is to use the HUD consultant, and he’ll be able to write that up in a way that’s gonna help you to be able to get that pool up to the proper standards in order to do an FHA 203k. Thanks again, as always, please make sure to comment, like and share RenovateThis!