Sometimes all a house needs is some simple TLC to make it a home – but it’s not always easy for buyers to come up with the extra cash for repairs, even if it’s a fairly minor project. That’s where an FHA 203(k) Streamline Loan can help. This program differs from a regular 203(k) in that it simplifies borrowing for minor improvements without the extra cost or details, and doesn’t require a write up of plans from consultants, engineers or architects. The following information is provided by the Department of Housing and Urban Development and the HUD guys.
203(k) Streamlined Limited Repair Program Basics
- No minimum repair costs
- Allows for renovations of up to $35,000
- One loans covers purchase and repairs
A 203(k) Streamlined Loan does have one important similarity to a traditional 203(k) rehabilitation loan in that it covers a vast range of improvements. These include:
The repair or replacement of:
- Roofs, gutters and downspouts
- HVAC systems
- Exterior decks, patios and porches
- Windows, doors and exterior siding
- Septic systems
Other eligible improvements include:
- Basement waterproofing
- Remodeling projects that don’t involve structural changes
- Appliance purchase and installation
- Disability accessibility
Choosing a Lender
There are many options when it comes home renovation lending. Here are some some popular providers:
- PNC Bank – (877) 508-3339 – More info on their 203K loans
- eLEND – (800) 634-8616 – More info on their 203K loans
- Wells Fargo – (877) 571-0583 – More info on their 203K loans
- You can also look up lenders in your area on HUD’s web site here.
Who is eligible for a 203(k) Streamlined Loan?
The Department of Housing and Urban Development makes the FHA Streamline Loan available to certain lenders to help borrowers of all income levels make repairs on a home they wish to buy or that they already live in. The owner must plan to occupy the dwelling, which can consist of up to 4 units. Eligible properties include single-family dwellings, condos, townhouses, and mixed use structures. Nonprofit organizations may also qualify for a 203(k) Streamline, but investors are not eligible. Other terms and conditions may apply.
There are certain circumstances where a streamlined is not appropriate. These may include:
- Work that takes more than 6 months to complete
- Renovations that require plans or architectural exhibits
- Work that causes the homeowner to be displaced for more than 30 days
- Improvements that are considered amenities or luxuries, like landscaping, pools and gazebos