The 203k home loan, Streamline style

There are two different 203k home loans.  The FHA 203k Standard loan, and then there’s the FHA 203k Streamline home loan.  The 203k Streamline loan is for smaller jobs and cosmetic in nature.  A homebuyer can receive up to $35,000 in funds with the 203k Streamline home loan to put in carpet, paint, countertops, cabinets, a new roof, a new air conditioning unit, new appliances and more.  It’s an abbreviated version of the 203k Standard loan.  Have a 203k loan question? Click here to send me your scenario.

The 203k Standard loan does bigger jobs such as adding on square footage, general construction, moving load bearing walls, and reconverting non-permitted garages back to the original garage.

In today’s real estate market there are quite a few foreclosures, short sales and homes that have non-permitted improvements that are hitting the market.  Many times the homeowner doesn’t have the funds to fix issues or even primp it a bit.

The 203k Streamline loan and the 203k Standard loan, give a homebuyer a home loan to buy the home plus additional funds on top of the purchase loan to fix or primp the home…….all in one loan on a low 30 year fixed rate with a low downpayment.

Both the 203k Streamline loan and the 203k Standard should be increasing in popularity in light of our existing real estate market.  The issue is getting the word out to consumers and getting the Realtor community to embrace it.  Feel free to ask a 203k loan question or send a scenario by clicking here.

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One Comment

  1. Posted May 31, 2011 at 5:53 pm | Permalink

    In regards to the 203k loan being done as an adjustable rate, most lenders are shying away from this, but not all. It depends on the lender and should be disclosed early in the loan process whether or not an adjustable 203k loan is available or not.

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