Sound like a good deal? It could be! The FHA 203(k) Streamline loan is designed to help out quite a few home buyers and home owners, but it is not for every situation.
What follows is a very basic overview to see if this is the right loan for you.
As a general rule, the FHA 203(k) Streamline loan is for the purchase or refinance of one-to-four (single family) residences, including HUD REO owner-occupied properties. It combines the funds to purchase or refinance (pay off existing liens) along with the funds needed to repair/rehabilitate the property. Repairs are completed after closing.
Some of the eligible improvements include:
- 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 flooring
- Minor remodeling, such as kitchens, which does not involve structural repairs
- Painting, both exterior and interior
- Weatherization, including storm windows and doors, insulation, weather stripping, etc.
- Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
Improvements that are ineligible include:
- Major rehabilitation remodeling, such as the relocation of a load-bearing wall
- New construction (including room additions)
- Repair of structural damage
- Manufactured Home foundation repairs / upgrades to meet HUD standards
- Landscaping or similar site amenity improvements, including fence
Again, this is just very basic information and is not all-inclusive. There are certain requirements for contractors that do the work as well as limitations on what the home owners can do themselves. It is similar to a construction loan in certain aspects including draws for the improvements.
For more information, please go to my site for Indiana FHA 203(k) Streamline Loans
Scott Swinford, your Northwest Indiana Loan Guy
Your source for Indiana FHA loans, Indiana FHA 203(k) Streamline loans, Indiana USDA Rural Development loans, and much more.
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