FHA 203(k) Streamline Loan
The FHA insured mortgage program has a program called the “Streamline (K)” Limited Repair Program. The Streamline 203(k) loan permits homebuyers and those refinancing to borrow up to an additional $35,000 above the purchase price to improve or upgrade their home.
While there are some limitations that include the type of work to be done and the amount available for improvements, the Streamline program should serve the majority of borrowers.
ELIGIBLE IMPROVEMENTS INCLUDE
Repair/Replacement of roofs, gutters and downspouts
Repair/Replacement/upgrade of existing HVAC systems
Repair/Replacement/upgrade of plumbing and electrical systems
Repair/Replacement of flooring
Minor remodeling, such as kitchens, which does not involve structural repairs
Painting, both exterior and interior
Weatherization, including storm windows and doors, insulation, weather stripping, etc.
Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
Accessibility improvements for persons with disabilities
Lead-based paint stabilization or abatement of lead-based paint hazards
Repair/replace/add exterior decks, patios, porches, sidewalks, driveways
Basement finishing and remodeling, which does not involve structural repairs
Basement waterproofing, including mold removal
Window and door replacements and exterior wall re-siding
Septic system and/or well repair or replacement
Non-eligible improvements include any type of repairs to the structure, certain additions to the property, and repairs with a cost of greater than $35,000. For these, you may need to consider a standard 203(k) home repair loan.