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Follow Up to FHA 203k Streamline Rehab Loans July 21, 2008

Posted by Patti Shawgo in Uncategorized.
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Below is a list of the eligible and ineligible repairs that can be part of a 203k streamline loan.  Also….and this is one of the number one questions I get asked about this, you can’t do the work yourself with a streamline 203k!  Unless you are a licensed general contractor, electrician, etc, you need to leave that work to professionals that can show they can competently complete the work.

To see what they are, read on…

Streamline 203(K) Eligible Work Items

Use of the Streamline(K) program is limited to properties with the following work category items:

Repair/Replacement 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.
Appliances — when at least $3,000 of basic home repairs are involved. Appliances may include free-standing ranges, refrigerators, washers/dryers, dishwashers and microwaves and may not exceed $2,000 in total cost.
Improvements for accessibility for persons with disabilities

Streamline 203(K) Ineligible Work Items

Properties that require the following work items are not eligible for financing under the Streamline(K):

major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;
new construction (including room additions);
repair of structural damage;
repairs requiring detailed drawings or architectural exhibits;
any environmental mitigations including modifications involving disturbance of painted surfaces in pre-1978 properties or any lead based paint abatement;
landscaping or similar site amenity improvements;
any repair or improvement requiring a work schedule longer than six (6) months; or
rehabilitation activities that require more than two (2) payments per specialized contractor.

Comments»

1. The Frugal Investor - July 24, 2008

Sounds interesting. Is this program for investors or just those planning to occupy the property? If the latter, do U know of or have such programs for investors?

2. kathy - September 1, 2009

Are the closing costs more for this type of loan, and what is the difference between it and the regular 203K?