FHA 203K Streamline
Account Description
· 203(k) program is HUD's primary program for the rehabilitation and repair of single family properties.
· Section 203(k) fills a unique and important need for homebuyers.
· When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process.
· The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment.
FHA 203(k) can help you
· Offer a solution that helps borrowers obtain financing that covers both the acquisition and rehabilitation of the property
· Help borrowers save time and money
· Increase revenue potential through a unique product offering
Down Payment
· 3.5% of borrowers own funds.
Eligibility
· Purchase, Rate& Term Refinance
· Primary Residence, Owner Occupied
· Single-family dwellings
· Planned Unit Developments (PUDs)
· Site condominiums
· Condominiums
· 2-4 units
· No minimum repair amount
· Maximum repair amount of $35,000, including contingency, inspection fee and supplemental orig fee
· To facilitate uncomplicated repairs/improvements
· No Consultant required
· No Architect required
· Approved General Contractor must do repairs/improvements
· 10% Contingency reserve
· Eligible Improvements
· Repairs/Replacement of roofs, gutters, and downspouts
· Repair/Replacement/Upgrade of existing heating, ventilation and air conditioning systems
· Repair/Replacement of plumbing and electrical systems
· Repair/Replacement of flooring
· Minor remodeling that does not involve structural repairs, such as kitchens
· Exterior and Interior painting
· Weatherization, including storm windows and doors, insulation, and weather stripping
· Purchase and installation of appliances, including free-standing ranges, refrigerators, washers and dryers, dishwashers and microwaves
· Improvements for accessibility for persons with disabilities
· Lead-based paint stabilization or abatement of lead based paint hazards
· Repair/replacement/Addition of exterior decks, patios, porches,
· Basement finishing and remodeling that does not involve structural repairs
· Basement waterproofing
· Replacement of windows and doors and exterior wall re-siding
Loan Limits
· Set by county.
· See https://entp.hud.gov/idapp/html/hicostlook.cfm for maximum limits.
Penalties/Restrictions
· No Prepayment Penalty
Account Features
Account Disclosure/Statements
Assistance