In today's real estate market and economy more people are looking for ways to improve their home. Also people are buying bank foreclosures and fixing them up. But the problem many people are running into is the difficultly of getting a construction or rehab loan. That is where the 203K Streamline Loan steps in.
The official name of this program is the FHA Streamlined 203(k) Limited Repair Program. The 203K Streamline Program will allow a homebuyer or homeowner to purchase a home or refinance a mortgage plus include in the loan the costs of repairs and improvements in the loan.
The 203K Streamlined loan is not a government loan, it is provided though FHA Approved Lenders throughout the country. Because the 203K Streamline Loan is insured by FHA, the FHA Approved Lenders are more willing to make them available to more people.
Another good benefit of the FHA Streamlined 203K Limited Repair Program is the low down payment of 3.5% and people with less than perfect credit can get a 203K Streamline Loan. Most conventional renovation loans requires 20% down payment and higher interest rate.
But not all improvements or repairs are eligible for the FHA 203K Streamlined Limited Repair Program.
First the 203K Streamline Program is not intended for a major renovation of a property. It is intended for uncomplicated repairs and improvements which don't required engineers, architects, consultants, or plans that tend to slow things down and run up costs.
Here Are Some Of The Improvements Eligible For The 203K Streamline Loan:
1. The repair or replacement of roofs, gutters, and downspouts.
2. You can use it to repair, upgrade, and replace your existing HVAC system.
3. You can replace the flooring including carpet.
4. Minor remodeling, an example would be a kitchen, but you can't use the 203K Streamline to do structural repairs.
5. Painting the house inside and out.
6. Energy saving items such as weatherization, storm windows and doors, insulation, and weather stripping.
7. You can buy and install appliances such as free-standing ranges, refrigerators, washers and dryers, and dishwashers.
8. Improve accessibility for persons with disabilities.
9. Stabilization or abatement of lead-based hazards.
10. You can even add, repair, or replace decks, patios, and porches.
11. If you have a basement you can get it waterproofed.
12. Replace windows and doors, and also you can do exterior wall re-siding.
13. Repair or replacement of septic system and well.
As you can see the 203K Streamline Loan can be used to do a lot of improving and repairing of your property without the hassles of plan, architects, and engineers required by most renovation loans.
Because of economical reasons, the popularity of the 203K Streamline Loan has increased in the last few months. The 203K Streamline could be just what you are looking for to make the wanted improvements to your home or buy a foreclosure home to fix up.
