The Streamlined 203(k) Program is
Back!
The
Streamlined Federal Housing Authority (FHA) 203(k) program allows
qualified borrowers to finance an additional $35,000 to make a wide
variety of home improvements. This popular program had been
suspended last year because of issues many lenders had managing
disbursements for the improvements. Improved processes are now in
place and we’re delighted to be able to offer this solution once
again.
Borrowers can use the $35,000 for a
range of eligible improvements:
•
Repair or replace: windows, doors, exterior siding, roofs, gutters,
downspouts, HVAC systems, plumbing, electrical systems, flooring,
insulation, weather stripping, or exterior decks/patios/porches
•
Purchase and install appliances, including: free-standing ranges,
refrigerators, washers, dryers, dishwashers and microwaves
•
Make accessibility improvements for persons with disabilities
•
Remodeling, when it does not involve structural alterations (e.g.,
remodeling an existing kitchen or finishing an unfinished basement
is acceptable; planning a new addition or changing wall placement is
not)
Program highlights:
•
Eligible on fixed-rate mortgages with 30-year terms
•
One underwriting review and one closing; financing is based on the
‘as-completed’ value of the home rather than the present value
•
Eligible for 1- to 4-unit primary residences
•
There is no minimum rehabilitation amount; borrowers can finance up
to an additional $35,000
•
Funding can be used for a variety of improvements, including purely
cosmetic improvements, but cannot be used on projects that include
structural alterations
•
Participants have six months to complete the improvements
The Streamlined 203(k) program may be a great solution for clients who are looking for a cost effective way to repair or improve their current home but want an alternative to a second mortgage or HELOC, or for buyers who are interested in rehabilitating a property that may be in need of improvement. Do you have any questions about this program or about any of our other financing solutions? Give me a call at 952-941-6364.