FHA 203k Streamline Loan


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.

General Overview

FHA 203(k) Streamline loans
By: Mark Moz

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)


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


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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 sswinford@myccmortgage.com .