Streamlined FHA 203K Loan

The good thing it is much more easy to use this program than the regular FHA 203K. It can like the regular FHA 203 K loan be used 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 is 203K eligible under this new Streamlined 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 that are not Streamlined 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 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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