FHA 203K Streamline Renovation/Purchase

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So you or your client have found a home in a great area in the client's price range. Only one problem: it's in bad shape. The HVAC system is 50 years old, the roof is 40 years old and the windows may as well not even be closed. Plus the kitchen has vinyl floors in 3 different patterns and the counters are all laminate with burns and holes and scars.

Not to fear! Meet the FHA 203K Streamlined renovation loan.

Eligible Improvements Virtually any kind of improvement is eligible provided it becomes a permanent part of the real property and adds value. 


  • Additions to the structure
  • Kitchen or bath remodels
  • Finished basement or attic
  • Patios, decks or terraces
  • Roofing and landscaping
  • Safety, energy efficiency and electrical upgrades
  • Handicapped accessibility improvements


Luxuryitems are not eligible


  • Swimming pools, hot tubs, tennis courts, gazebos, barbecue pits, saunas or alterations to support commercial use
The maximum loan amount must be within the FHA loan amount maximum for the MSA where the home is located and must include the purchase price and the renovation amount. The maximum renovation amount is $35,000 and the minimum is $5,000. Under $5,000 we can do with an escrow of repair funds. A minimum of 10% contingency reserve is required and must also fit into the FHA loan maximums for the area where the property is located. (Any balance remaining on the contingency will be applied to the principal balance and may not be used for additional repairs.)

FHA 203K Streamlined Rehab/Renovation Loan

Yes, it takes a little longer to close an FHA203k Streamline loan than it does to close a standard FHA loan. If you are an agent and you are concerned about that extra couple of weeks just think of it this way: You may make a sale you would not have otherwise made. You may help a buyer get into a home in the area where they wanted to live instead of where they "had" to live. You can be a real hero for someone.

If you are in Georgia I can help you with the necessary paperwork and give you a short class in how to use the FHA 203K Streamline Rehab loan to purchase, sell or represent homes in today's economy. Never hesitate to call me at any time and I'll be happy to answer your questions.


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I started writing on Active Rain in 2006 when I was representing the mortgage industry. I am no longer in that industry and many of the older posts contain outdated information. Please do not contact me for LENDING or MORTGAGE questions but rather contact a licensed mortgage professional from your area. I have always been in marketing and branding and that is still what I do. Thanks for reading!


Re-Bloggged 16 times:

Re-Blogged By Re-Blogged At
  1. Steve Kappre 11/19/2009 04:26 PM
  2. Kristina Pratt 11/19/2009 06:08 PM
  3. Bill Ladewig 11/19/2009 06:09 PM
  4. John Occhi 11/19/2009 06:41 PM
  5. Rosemary Brooks 11/19/2009 07:59 PM
  6. Sharon Alters 11/19/2009 08:01 PM
  7. Lane Bailey 11/19/2009 10:16 PM
  8. Carol Lee 11/19/2009 10:29 PM
  9. Judi K Barrett 11/20/2009 07:19 AM
  10. Peggy James 11/20/2009 08:39 AM
  11. Tim Bradford 11/20/2009 03:53 PM
  12. Harry F. D'Elia 11/20/2009 08:38 PM
  13. Charles Stallions 11/21/2009 05:51 PM
  14. Dave Iliff 11/30/2009 04:22 PM
  15. Jim Hale 12/11/2009 02:30 PM
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Mortgage / Finance
North Georgia Real Estate

Comments 31 New Comment

Charles Perkins
Charles G. Perkins, CPA

I'm certainly going to check into this loan product.  I'm going to see if anyone is doing these in the Seattle area.

November 20, 2009 02:27 AM
Judi K Barrett
Broker/Owner, Integrity Real Estate Services -IDAB
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma


This took some time for you to cover this so well. I am appreciative of this post, it spells it out in easy to understand format that can be understood by anyone whether they are working with mortgages daily or a consumer that needs an FHA 203K.

Thank you.  Is it Ok if I re-blog for my clients also?


November 20, 2009 07:17 AM
Dawn Maloney
330-990-4236 Hudson Stow Cuyahoga Falls Silver Lak
RE/MAX Haven - Northeast Ohio Real Estate Specialist

I am sooo grateful for this info. Not easy to locate!!

November 20, 2009 07:54 AM
Steve Mattison
Ozarksagent Steve Mattison - ABR, e-Pro - Branson
Keller Williams Tri-Lakes Realty of Branson

I assume this can be used to buy REO's and short sales too?  Thanks for the great info, again, KEN!

November 20, 2009 02:43 PM
Lyn Sims
Schaumburg Homes
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago

'Streamline version is a little limited' - just closed one and you better have mucho patience with the extra paperwork.  Good post Ken.

November 20, 2009 03:12 PM

Ken Cook

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