203k Streamlined

203k rehab Loans

203k rehab Loans

The streamline 203k is a perfect program for REO properties with minimal repairs.

Did you know you can tell the bank that they will not be responsible for the repairs?  WOW!  The bottom line not to mention the headaches,  just looked a lot better!   And that FHA buyer that didn’t look so great, just went from mediocre to a GREAT offer!

The FHA 203k Loan allows for the client to finance the cost of repairs needed on a property into their mortgage.  The repairs are done after closing so this is an advantage to the seller or bank that owns the property because they aren’t responsible for the repairs.  This is a great negotiating tool for your client who may be up against other offers which would require the seller/bank to do the repairs!  Are there any foreclosed properties out there in need of repair?  I think so! This is perfect for those REO properties that have missing appliances or plumbing and electrical repairs needed!

STREAMLINE 203k for dummies

The Streamline 203k is for limited repairs requiring little expertise to manage therefore there is no consultant required (Although it depends on the extent of the repairs, I may recommend you get one anyway – It’s worth the cost!).  It is designed for a “streamlined” project where the home can be occupied immediately after closing, and the contractor will receive a single payment at completion. (Maximum of 3 contractors) The maximum amount that can be financed on top of the sale price for the streamline is $35,000 (which includes some fees/reserve/costs) so assume about 30,000 in actual repairs.

Below are the Eligible and Ineligible repairs for the Streamline K


  1. Repair/replacement of roof, gutters and downspouts
  2. Repair/replacement/upgrade of existing HVAC systems
  3. Repair/replacement/upgrade of plumbing and electrical
  4. Repair/replacement of existing floors
  5. Minor remodeling, such as in the kitchen, which does not involve structural repairs
  6. Exterior and interior painting – including lead-based pain stabilization.
  7. Weatherization:  including storm windows and doors, insulation,, weather stripping, etc.
  8. repair/replacement/upgrade of appliances (may include free-standing ranges, refrigerators, washer/dryers,  and microwaves)
  9. Improvements for accessibility for persons with disabilities
  10. Repair/Replace/add decks,patios and porches
  11. Basement finishing/remodeling/waterproofing (not requiring structural repairs)
  12. Window & Door replacements and exterior wall re-siding.
  13. Septic and/or well repair or replacement


  1. Major rehabilitation or major remodeling, such as relocation of a load-bearing wall.
  2. New construction, including room addition.
  3. Repairs of structural damage.
  4. Repairs requiring detailed drawings or architectural exhibits
  5. Any rehabilitation activities that require more than two payments per specialized contractor
  6. Landscaping or similar site amenity improvements
  7. Any repair or improvement requiring a work schedule longer than six months
  8. Work items that would necessitate a consultant to develop a work write-up
  9. Work that would cause the borrower to be displaced from the property for more than 30 days during the time of rehabilitation
  10. All items ineligible for the Full Consultant 203k

This works the same way as the Full Consultant 203k program but can be done in less time.  We recommend at least 90 days for the Consultant K program and 45 for the streamline.

The banks want to unload their inventory as quick as possible and with the least amount of costs.  Educate your clients which INCLUDES the bank about this program and close more deals.  This is also a great way to negotiate a short sale if you have a qualified 203k buyer.  But just remember -give it the time it needs and set the expectations up front.   This is why having a certified FHA 203k Lender with experience with this program is crucial.

This program can also be combined with the Energy Efficient mortgage for those clients that are GOING GREEN!

There are so many options and I would be thrilled to help you find  the right program that most people don’t even know exist!

Happy Rehabbing by Colleen Craig!


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