The FHA 203k loan allows you to get the money for the home improvements all in one loan as a purchase or a refinance. FHA 203k loans are unique and have many misunderstandings about them. I will be explaining the basics of the FHA streamline 203k limited repair program.
To qualify for the loan itself it follows the same parameters to qualify for a regular FHA Loan with a credit score of 620 and at least a 3.5% down payment. The repairs must be non-structural thus no foundation or a relocation of a load-bearing wall. Repairs included in the loan can include the repair, replacement, and/or upgrade of almost anything such as
We do require 2 bids for all work over $5,000. Any items the appraiser requires to be done must be done as a part of the rehabilitation to make the property FHA eligible. The maximum allowed is $35,000.
Careful planning upfront will make for a smooth transaction. The information provided is certainly not all inclusive and was just meant to explain the basics of the repair program. For more detail or specific questions please contact me at firstname.lastname@example.org