The 203(k) Streamline mortgage may be used for purchase or refinance of one-to-four (single family) residences, including HUD REO properties
This page is meant to provide some basic information on the FHA 203k Streamline loan. The information is NOT all-inclusive and should be used for guidance only. If you need further information, you should contact a lender like myself who is familiar with the guidelines before submitting a purchase offer on a home.
May be used for purchase or refinance of one-to-four (single family) residences, including HUD REO properties
May be either Fixed or Adjustable rate mortgages
Combines the funds to purchase or refinance (pay off existing liens) along with the funds needed to repair/rehabilitate the property. Repairs are completed after closing. (NOTE: Cannot do a Cash-Out Refinance)
One closing, with rehabilitation funds escrowed and disbursed as the work is satisfactorily completed
Can be used to update homes, correct health and safety issues, pay for higher cost items such as a roof, etc.
Property value must be sufficient to purchase/refinance and complete the rehabilitation
Borrower and credit eligibility same as for other programs (No Investors, including REO sales)
ELIGIBLE IMPROVEMENTS INCLUDE:
Repair/Replacement of roofs, gutters and downspouts
Repair/Replacement/upgrade of existing HVAC systems
Repair/Replacement/upgrade of plumbing and electrical systems
Repair/Replacement of flooring
Minor remodeling, such as kitchens, which does not involve structural repairs
Painting, both exterior and interior
Weatherization, including storm windows and doors, insulation, weather stripping, etc.
Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
Accessibility improvements for persons with disabilities
Lead-based paint stabilization or abatement of lead-based paint hazards
Repair/replace/add exterior decks, patios, porches, sidewalks, driveways
Basement finishing and remodeling, which does not involve structural repairs
Basement waterproofing, including mold removal
Window and door replacements and exterior wall re-siding
Septic system and/or well repair or replacement
INELIGIBLE IMPROVEMENTS INCLUDE:
Major rehabilitation remodeling, such as the relocation of a load-bearing wall
New construction (including room additions)
Repair of structural damage
Manufactured Home foundation repairs / upgrades to meet HUD standards
Landscaping or similar site amenity improvements, including fence
Any repair or improvement requiring a work schedule longer than three (3) months; or Rehabilitation activities that require more than two (2) payments per specialized contractor.
Repairs requiring detailed drawings plans or architectural exhibits, or require a plan reviewer
Connection to public water or sewage system
Again, this is just a brief overview of the 203k Streamline loan and is not all-inclusive. The guidelines require bids from licensed contractors, as well as other requirements. Although the purchaser is able to do some of the work involved, there is no “sweat equity” allowed.
If you would like more information on this or any of our other loan products, please feel free to contact me at 219-695-0369 or email firstname.lastname@example.org .