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FHA 203(k) Streamline is not what you expect when you hear 203(k). It is not the cumbersome program of old that required a consultant, nor does it require a general contractor. There are limits as to what can be done with the program, but overall, it is great for those “fixer-uppers” that need some cosmetic repair to make it work. MAJOR POINT: it is only for owner occupied properties.

The FHA 203(k) Streamline loan allows a buyer to purchase or refinance a home and close on it prior to having some of the repairs done that they want or the lender requires. The program allows repairs/remodeling and free standing appliance purchase up to $35,000 (inclusive of 10% contingency). The work must be done within 90 days of closing and will be paid in one or two installments. It doesn’t require a general contractor and can be a combination of things. No major structural work is permitted under the program guidelines.

This is what you can do with the FHA 203k Streamline loan:

• Repair/replace roofs, gutters and downspouts
• Repair/replace/upgrade existing HVAC systems
• Repair/replace/upgrade plumbing & electric
• Repair/replace flooring· Minor remodeling, such as kitchens (non structural)
• Painting, both exterior and interior
• Weatherization, including storm windows and doors, insulations, weather stripping, etc.
• Purchase & installation of appliance, including free standing· Accessibility improvements· Lead based paint stabilization
• Repair/replace/add exterior decks, patios & porches· Basement finishing & remodeling (non structural)
• Window and door replacement & exterior wall residing· Septic system and/or well repair or replacements

I can help you with this program in Oregon, Washington and California. Give me a call today!

Article Written By:  Fred Chamberlin, A Eugene/Springfield Mortgage Consultant – 541-342-7576