What is a Streamline 203K loan?

The Streamline 203K program is a FHA insured loan that allows a person to purchase or refinance a property and finance the cost of minor renovation from $5,000 to $35,000 into one new 1^st mortgage loan.

How Does a Streamline-K Loan Work?

It used to be that you applied for a second mortgage home improvement loan to do the repairs, but in today’s market many lenders won't make home improvement or rehab loans. Most lenders are not longer funding second mortgages even if you do have equity.

• This program can be for the purchase or a refinance.
• The total amount of your mortgage will be based on the projected value of your home after the renovation is completed.
• It can be a fixed rate with a 15 yr or 30 year term.
• The mortgage balance can exceed the purchase price and or the current market value of the property.
• You are not required to use a contractor to certain repairs.

Eligible Repairs & Improvements

The Streamline-K loan allows for simple repairs that can be easily estimated and completed. Most are considered cosmetic repairs, but some will require hiring a licensed contractor if it falls out of the borrower's area of expertise. Here is a partial approved list of repairs.

• 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
• Energy efficient improvements
• Decks, patios, porches
• Purchase of new kitchen appliances or washer & dryer

 Repairs Not Allowed

Disbursement of Payments

• Maximum of two payments to each contractor, including the borrower, providing the borrower works under a "self help" plan.
• No more than a 50% advance is allowed.
• Do-it-yourself allowances do not include labor; only materials costs are allowed.
• Final payment is made after submission of evidence of payment to sub-contractors, suppliers and any other possible lien claimant.

To learn more call (800) 864-7070

And speak with one of our loan consultants.