Streamlined FHA 203K Loan-Great Way To Finance Home Repairs!

One of the best ways to finance a HUD Home that needs repairs is a Streamlined FHA 203K Loan.

The fairly new Streamlined FHA 203K Loan is great for the purchase of a HUD home. It is also a great way to finance repairs to your existing home.

The purpose of this 203K loan is to assist home buyers with basic repairs costing up to $35,000. There is no minimum amount.

The good thing it is much easier to use this program than the regular FHA 203K. It can be used just like the regular FHA 203 K loan to insure a mortgage on a single-family housing unit sold from the HUD's REO inventory AKA HUD homes.

The Streamlined 203K Loan Program is intended to facilitate uncomplicated rehabilitation and improvements to a home. Unlike the regular FHA 203K loan program consultants, engineers, and architects are not required.

What improvements are 203K eligible under this new Streamlined FHA 203K Loan Program?

Most repairs can be included in the Streamlined 203K Loan Program as long it is not structural repair. That is the great thing about this loan program, it is simple and streamlined compared to the traditional FHA 203K Mortgage .

Here is a list of some of the repairs that can be included in the Streamlined FHA 203K Loan Program:

1. Repairs or replacement of roofs, gutters, and downspouts.

2. Repair or replacement of existing HVAC systems.

3. Repair or replacement of flooring.

4. Minor remodeling, such as kitchens, which does not involve structural repairs.

5. Painting, both inside and outside.

6. Weatherization, storm doors and windows, insulation, etc.

7. Cost of new appliances, including ranges, refrigerators, washers and dryers, dishwashers and microwaves ovens.

8. Accessibility improvements for the disabled.

9. Lead-based paint stabilization.

10. Repair or replace decks, patios or porches.

11. Finishing and waterproofing basements.

12. Septic system or well repair or replacement.

Items not Streamlined FHA 203K eligible are:

1. Major rehabilitation or major remodeling, such as the relocation of load-bearing walls.

2. New construction including room additions.

3. Repairs of structural damage.

4. Repairs requiring detailed drawings or architectural exhibits.

5. Landscaping or similar site improvements.

This Streamlined FHA 203K Loan can be made by all FHA approved lenders. The regular FHA 203K program only approved certain FHA lenders.

You can also use the Streamlined FHA 203K Loan Program to refinance your mortgage. Only credit-qualifying "no cash out" refinance transactions with an appraisal are 203K eligible for the Streamlined FHA 203K Loan.

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