HUD has developed a new FHA insured mortgage program, called the “Streamline 203k” Limited Repair Program that permits homebuyers to finance up to an additional $35,000 of repairs into their mortgage to purchase and improve or upgrade the home before move-in or to refinance an existing mortgage and add up to $35,000 in repairs or improvements. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. Unlike the standard 203(k) program, any FHA approved lender may originate a Streamlined 203k mortgage.
The following repairs can be financed with this program:
* Repair/Replacement of roofs, gutters and downspouts
* Repair/Replacement/upgrade of existing HVAC systems
* Repair/Replacement/upgrade of plumbing and electrical systems
* Repair/Replacement of existing flooring
* Minor remodeling, such as kitchens, which does not involve structural repairs
* Exterior and interior painting
* Weatherization: including storm windows and doors, insulation, weather stripping, etc.
* Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwaves.
* Improvements for accessibility for persons with disabilities.
* Lead based paint stabilization or abatement of lead based paint hazards.
* Repair, replacement or the addition of exterior decks, patios and porches.
* Basement remodeling which does not involve structural repairs.
* Basement waterproofing.
* Window and door replacement and exterior siding replacement.
* Well or septic system repair or replacement.
This program can also be used with the purchase of a HUD home.
Team Woodall Tip: The Streamline 203k Program can be a fantastic asset for purchasers or homeowners looking to renovate a property in need of repairs, however the process for obtaining the financing isn’t necessarily a quick undertaking. Contact a lender for additional details on the program, but be advised that the borrower will have substantial work and documentation to provide in order to obtain money under this program.
