FHA 203(k) Streamline Loan

For Limited-repair, Home Improvement

The economic uncertainties stemming from global recession have affected investor confidence and consumer spending. As a result, most banks are reluctant, if not opposed, to granting new credits and loans to industry, and more so, to individuals. This has significantly impacted on all segments of the housing market, particularly, for people wishing to purchase a new home; people seeking loans to buy homes that need repairs or rehab; or people residing in homes that need repairs, renovation or rehab.

Lending a helping hand

FHA 203(k) Streamline Loan gaining widespread popularity in the US recently, is the availability of a vast number of ‘foreclosed’ homes which, although being purchased, are in need of repair. 

Simplified Appraisal procedures

The FHA 203(k) Streamline Loan offers both flexible (adjustable and fixed) rate options, both carrying similar interest as applicable under a standard FHA loan. On a new home purchase, the appraisal is carried out on a ‘Subject To’ basis, i.e. after all repairs / upgrades / improvements have been completed. Alternatively, 2 appraisals are needed for refinance. The first based on ‘As Is’ value, the second based on the ‘After Improvement’ (‘Subject To’) value.

Dual options, multiple benefits

The FHA 203(k) Streamline Loan Program has 2 options, with multiple benefits that will help you to carry out various non-structural, repairs, upgrades, replacements in your existing or new home. It can be utilized either as 1) An FHA option for New Home Purchase with an upgrade/repair clause, or 2) An FHA option for Refinancing your existing mortgage. However, you must know that the FHA 203(k) Streamline Loan, as opposed to the standard section 203(k) loan, permits borrowers to carry out ‘non-structural’ repairs to their current (or new) homes, up to a maximum of $35,000, all rolled into one plan. The FHA 203(k) Streamline loan is only underwritten one time upfront as it is not re-qualified in nature.

What does this loan permit?

FHA 203(k) Streamline Loan program will permit you to:

·       Carry out upgrades to facilitate access/movement for the physically challenged

·       Replace/repair downspouts, gutters and roofs

·       Replace/upgrade/repair electrical and plumbing systems

·       Replace/repair tiles and flooring

·       Remodel the kitchen without any structural repair work

·       Water-proof basement including removal of mold

·       Connect to public sewage or water system

·       Purchase and install free-standing home appliances such as a dishwasher; microwave oven; refrigerator; cooking range and washing machine, among others.

·       Paint the interior and exterior of the home

Kindly check what other repair/replacement/upgrades are allowed under this loan program. Note: All upgrades/repair/replacement work should be completed within 3 months from the closing date, and unless otherwise proved, must be carried out by a licensed contractor.

What isn’t permitted?

The FHA 203(k) Streamline Loan program does NOT permit the following major home improvement work, among others.

·       Major remodeling or rehab work (e.g. relocation of wall/s, pillar/s, etc.

·       Addition of room/s or any type of structural construction

·       Repair work that needs detailed architectural plans and drawings

·       Repair/s arising out of structural damage

Note: Do check for details on what work (other than those listed above) is not permitted under this loan program.

The FHA 230(k) Streamline Loan has been designed in a manner that puts it within reach of all deserving, applicants. Unlike conventional loans, it has excellent features, most reasonable repayment periods, and affordable interest rates. Above all, it will give you an opportunity to own your home, or improve it in a way that fits your budget and lifestyle perfectly.

So, forget the recession ... because you now have one solid reason to smile! Apply online today!

Apply Now

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