FHA 203k Streamline Rehab Loan
What is a 203K Loan?
The FHA 203K Rehab loan is a cost-effective loan which allows a buyer to finance necessary repairs and or desired home improvements while utilizing a 3.5% down payment FHA loan. It allows a single loan to facilitate a purchase or refinance along with renovating the home in a single transaction. Ultimately, this saves time and money because there is only one set of closing costs, one loan approval and closing. It’s the perfect program for a property that needs a little work and the buyer doesn’t have the cash to pay for improvements.
There are two types of 203K Rehab loans; Standard and Streamline. A Standard 203K Rehab Loan program can include structural changes, additions, fencing and improvements over $35K. However, the Streamline program is more popular in our market today. See below for highlights.
Program Eligibility
- 30 year fixed rate FHA mortgage n Primary residence only
- No minimum rehab amount, max is $35,000
- FHA guidelines apply for loan credit approval
- Minimum 640 credit score
- Cash reserves may be required
- Interested party contributions allowed up to 6%
- Standard FHA investment required
- Max 96.5% Loan to Value on a purchase
- Max 97.5% Loan to Value on a refinance
- Attached and detached single family residences, condos, and PUDs
- 2 to 4 unit Properties, where the owner lives in one of the units
- Energy Efficient Program Allowable
Remember to notate on line 305 of the contract: “Buyer obtaining a FHA 203K rehab loan; terms & conditions apply.”
Types of Improvements Include
- Repair/Replacement of roofs, gutters and downspouts
- Repair/Replacement/Upgrade of existing HVAC systems, plumbing and electrical systems
- Repair/Replacement of flooring
- Minor remodeling, such as kitchens, which does not involve structural repairs
- Painting, both exterior and interior n Weatherization, including storm windows and doors, insulation, weather stripping, etc.
- Purchase and installation of appliances
- Accessibility improvements for persons with disabilities
- Lead-based paint stabilization or abatement of leadbased paint hazards
- Repair/Replace/Add exterior decks, patios & porches
- Basement finishing and remodeling, which does not involve structural repairs
- Basement waterproofing
- Window/door replacement and exterior wall re-siding
- Septic system and/or well repair or replacement
Note: Structural alterations and luxury items such as swimming pools and barbecue pits are not eligible.
Home Buyer Tips
- 2 Myths That May Be Holding You Back From Buying
- 5 Reasons Home Ownership is a Good Financial Investment
- Do’s and Don’ts During The Loan Process
- FHA 90 Day Property Flip Waiver
- Getting a Mortgage: Why So Much Paperwork?
- How to know if it’s a condo?
- Look for a Luxury Home? Now’s The Time To Act!
- Ready To Make An Offer? 4 Tips For Success
- The Perfect Home Loan Application
- What You Need To Know About VA Loans
- Condo Loans - Low Down Payment
- How We Safe Guard Your Information
- Mortgage Insurance
- Niche - Unique Mortgages
- Path 2 Buy
- Rent vs. Buy
- Rising Rent - No Problem
- Student Loan Debt
- The Mortgage Process
- USDA-Wide Open Spaces
Homeowner Tips
Tax Information
Loan Programs
- FHA “Back-To-Work: Extenuating Circumstances” Program
- FHA 203k Streamline Rehab Loan
- HomeStyle Renovation
- HUD-184 Native American Program
- Jumbo Loans
- Veterans Assistance Loan Benefits
- Reverse Mortgage
- 3 Reasons Why First-Time Home Buyers Love FHA
- FHA - Home Ownership Opportunities
- FasTrac Approval Process
- Home Ready Program
- Jumbo Plus Loans
- Loan Programs - Pros & Cons
Closing Information
Financing Information
- How Low Interest Rates Increase Your Purchasing Power
- The Power of Pre-Approval for Agents
- Where Are Interest Rates Headed?
- Why Pre-Approval Should Be Your First Step
- Delayed Financing Options
- Discount Points vs Premium Pricing
- Duplex Financing Options
- FICO Scores
- Flipped Property Finance Options
- Jumbo - Credit Challenged
- No Lender Fees
- Refinancing
Specialty Programs
- Union Advantage
- FHA - Benefits
- FHA - Credit Requirements
- FHA - Limited Savings
- FHA - Refinance
- Family Opportunity Program
- Fannie Mae - 97% LTV
- HomeScout: Your Unfair Advantage
- Jumbo - Medical Loan Program
- Luxury Home - 2 Million Max
- NHF Platinum - Down Payment Assistance
- Non-Resident Alien Home Loan