Ed Gillespie First Priority Financial (916) 849-9200 916-849-9200 Welcome to the world of FHA Renovation loans!• What is a FHA 203[k] Streamline loan?• How can a this loan be used?• Advantages of these loans• The process
What is a Streamline 203[k]?• Purchase or refinance a home and include additional money for repairs or renovations. •Limited repairs requiring relatively little expertise to manage. • Designed for a “streamlined” project where the home can be occupied immediately after closing, and the contractor will receive a single payment at completion.
What is a Streamline 203[k]?• Great for Handyman Specials, As Is or REOs• Loan amount can go as high as 110% of the “after improved” value• Repairs may cost up to $35,000• Owner occupied only• 3.5% down• Close before repairs begin
Acceptable repairs for the Streamline203[k] include:• Repair/replacement of roof, gutters and downspouts• Repair/replacement/upgrade of existing HVAC systems• Repair/replacement/upgrade of plumbing and electrical systems• Repair/replacement of existing flooring• Minor remodeling, such as in the kitchen or bath, which does not involve structural repairs• Exterior and interior painting• Repair/replacement/upgrade of appliances (some limitations apply)• Improvements for accessibility for persons with disabilities