Streamlined (k) program

Hi Molly,

The minimum repair cost fixed of 203(k) of $5,000 is eliminated and in the Streamlined 203(k) Limited Repair Program the ceiling is raised to $35,000.

This revised maximum repair/rehabilitation amount recognizes the cost of making older homes more energy efficient.

In addition if the repairs exceed $15,000, the lender has to obtain an inspection to determine all listed repairs are completed.

I have one more thing to ask, can the streamlined (k) program be used for refinancing the mortgage?thanks

hi molly,

the streamlined (k) program can be used for refinance transactions including those where property is owned free and clear. only credit-qualifying "no cash out" refinance transactions with an appraisal are eligible for the program.

also if the property is owned by you for less than one year, then the acquisition cost will be used to determine the maximum mortgage amount.

colin

if i want the streamlined (k) program, then which improvements will be considered as eligible. anybody can help provide the details of the improvements which will be allowd for applying for this program...malones2006atgmaildotcom

Hi Malones,

The Streamlined 203(k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required.

The program includes the following improvements and/or repairs:

1. Basement finishing and remodeling, which does not involve structural repairs
2. Repair/Replacement/upgrade of plumbing and electrical systems
3. Repair/Replacement of flooring
4. Minor remodeling, such as kitchens, which does not involve structural repairs
5. Accessibility improvements for persons with disabilities
6. Lead-based paint stabilization or abatement of lead-based paint hazards
7. Repair/Replacement of roofs, gutters and downspouts
8. Repair/Replacement/upgrade of existing HVAC systems
9. Repair/replace/add exterior decks, patios, porches
10. Basement waterproofing
11. Window and door replacements and exterior wall re-siding
12. Septic system and/or well repair or replacement
13. Painting, both exterior and interior
14. Weatherization, including storm windows and doors, insulation, weather stripping, etc.
15. Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens

Do let us know if you have any other queries.

Colin

Hi Molly,

The Streamlined 203K program insured by the FHA allows homebuyers to finance up to an additional $35,000 included in their home loan. This extra amount helps them to carry out repair work in their home before moving in. But the improvements or home repairs should be such that these are identified by a home inspector or an appraiser. This type of loan program is offered by any FHA-approved lender.

Thanks,

Caron.

There is no current minimum on the 203k Streamline... only the full 203k as I understand it. So.. you could replace the carpet for $2000 as an example and still make it a 203k streamline... The full 203k has a minimum work requirement of $5,000. A consultant is required even on a 203k Stremline if the work is in excess of $15,000.. they just call him/her the Plan Reviewer". I've done several as well as thousands of complete 203k projects. A 203k consultant as part of their job description is a 'home inspector' but on a Streamline a 'contractor' may do the initial inspection and create the 'scope of work' documentation in the form of a 'bid' again, if it exceeds $15,000 you will need a "plan review". M