FHA 203K- Remodel Loan- Rehab Loan- FHA 203Ks…What??? Read On…

If you’ve been passing up buying homes that require cosmetic repairs for lack of funds to fix them up, FHA has a program for you. Not to be confused with FHA’s much more complicated 203K program, a Streamline-K loan eliminates much of the paperwork and simplifies the process to obtain remodeling funds.

I believe first-time home buyers should get all the help that you can. First-time buyers are often intimidated or overwhelmed possibly ill-prepared to deal with the work required bringing some homes up to today’s standards.

A FHA 203K Remodel or Rehab loan might be the answer.

So How Does a Streamline-K Loan Work?

It used to be that you bought a home and then applied for a home equity loan to fix it up, resulting in two loans. But many lenders won’t make rehab loans. Some won’t fund equity loans at closing, especially if there is no equity.

• A Streamline-K loan is figured into the original loan balance, resulting in one loan.
• It can be an adjustable or fixed-rate FHA Mortgage .
• The mortgage balance can exceed the purchase price of the property based upon future value after improvements.

Eligible Repairs & Improvements

The Streamline-K loan allows for simple repairs that can be easily estimated and completed. Many are considered light cosmetic repairs, but some will require hiring a licensed contractor if it falls out of the borrower’s area of expertise. Here is an approved list of repairs / improvements from HUD:

• Roofs, gutters and downspouts
• HVAC systems (heating, venting and air conditioning)
• Plumbing and electrical
• Minor kitchen and bath remodels
• Flooring: carpet, tile, wood, etc.
• Interior and exterior painting
• New windows and doors
• Weather stripping & insulation
• Improvements for persons with disabilities
• Energy efficient improvements  (Green Improvements)
• Stabilizing or removing lead-based paint
• Decks, patios, porches
• Basement completion and waterproofing
• Septic or well systems
• Purchase of new kitchen appliances or washer / dryer

For more information  please contact me today at 925-708-5400.

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