203k Streamline Mortgage
What is the 203K Streamline Home Loan?
The 203K Streamline loan, also known as the Repair and Restore Home Loan is a single FHA home loan program that allows a borrower to purchase or refinance a home which is in need of repair. It allows for additional funding for renovations within one transaction. Repairs and renovations must be completed by an authorized contractor. This program is available for single-family homes, 2-4 unit properties condo’s and townhouses and is best suited for homes needing minor repairs and/or new appliances. Some of the qualifying repairs could include roofs, storm windows, small kitchen remodeling, including the installation of appliances.
Are there any limitations within the 203K Streamline Home Loan Program?
Yes, the 203K Streamline home loan allows for up to $35K in repairs. It also requires that the homeowner use a licensed contractor who has been approved. Up to 50 percent of funding can be disbursed at closing, while the balance will be available upon the project’s completion. All repair and restoration work must begin within 30 days of closing.
Are there any improvements that are ineligible for the Restore & Repair Loan Program?
Major remodeling or structural improvements, such as moving a wall are not covered by this loan. New construction, additions, or structural damage cannot be funded by the 203K Streamline Loan program.
Other repairs ineligible for this loan include repairs requiring detailed architectural drawings, landscaping, and any renovation that exceeds two months in length.
For more information about 203K Streamline Home Loan program visit the HUD site.