The FHA Streamline 203(K) is a FHA loan where the borrower can purchase or refinance their home and include the costs to rehabilitate and repair it in the same loan.
FHA Streamline 203(K) Benefits
· Repairs are completed after closing with loan proceeds
· Great tool for REO Properties
· Low down payment
· One loan amount for the purchase or refinance and repairs
· Loan fees may be financed
· Mortgage is FHA insured
· No inspection necessary
· No general contractor required
FHA Streamline 203(K) Key Highlights
· Minimum 640 credit score
· Minimum 3% down required
· No Down Payment Assistance Programs allowed
· Seller can pay up to 6% in recurring and non-recurring closing costs
· No manufactured homes
· 6 months PITI can be financed into the mortgage loan if property is not habitable
· Licensed contractors not required. Self-Help okay.
· $5,000.00 minimum amount required for repairs
· $35,000.00 maximum amount allowed for repairs
· 10% contingency reserve required
