FHA Streamline 203(K)

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