FHA 203k Streamline vs 203k Full Renovation

By
Mortgage and Lending with Independent

Renovation Lending

The main concept behind these loans a.k.a Rehab, Renovation, 203k and Home Improvement loans is quite simple, clients who wants to finance the costs of home improvements through the mortgage for a purchase or refinance.

Financing the costs of the home improvements through the mortgage can be cheaper than high interest credit cards, emergency savings and high interest unsecured loans.

 

Don't worry about the appraised value if the house is in bad shape, the loan is based on the after improved value of your improvements.

Typically these loans can close in 30-45 days, with contract work started within 30 days of closing.

Whats the difference between the 203k Streamline and Full Renovation?

 

 

FHA 203k Streamline

  • NO HUD CONSULTANT - this is the biggest distinction here compared to full renovation.  Saves time and delays.
  • Less fees vs a Full Renovation - cheaper
  • No Reserves - Full 203k requires reserves
  • Restricted to $35,000 in repairs - *no major structural repairs* Over 35k is Full 203k.
  • No Inspections - over 15k in repairs just needs to verify work is done.
  • No Contingency Added
  • Repairs must be completed in 6 months - no extensions, after 6 months must be kicked to full renovation.
  • Owner Occupied / 1-4 family

 

 

Rennovation Specialist

Renovation programs are great for 1st time home buyers providing solutions for needs and wishes into reality.

 

With Foreclosures and short-sales on the rise, many homes on the market need a lot of T.L.C and most of the time the previous owner had not taken complete care with the home, this is repair the 203k loan can shine for you.

 

 

Remember, not all Mortgage Professionals offer 203k Loans.  Consult with a Renovation Specialist who can guide you through the decision in Streamline vs Full Renovation.  By the way...I offer both :)

 

______________________________________________________

Just-In-Time Loans - Mortgage Needs and Advice on Time. (757-228-3668)

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  1. Maureen McCabe 05/06/2009 02:45 PM
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Location:
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Anonymous #1
Anonymous
Anonymous

Nice post showing highlights of this great product.

June 15, 2008 10:07 PM
Rainer
82,260
Justin Williams
Loan Officer
Independent

Thanks for Commenting Scot! Good to see another Wells Fargo Family here.

June 15, 2008 10:30 PM
Rainer
13,300
Brandon Weber
Weber Property Group

I love this product and I am currently working a deal in which my client is planning on using it. Great opportunity for buyers to improve a duplex that they will be living in.  They are newlyweds and first-time buyers and don't have a lot of cash sitting around. Should prove to be a great deal for them. Thanks for the great post!

June 16, 2008 01:21 AM
Rainer
55,863
-- Casey Brischle
Spokane Home Loan Mortgage Professional
Columbia Bank

Great little comparison Justin.  With the 35k in repairs they still have to be under the 97% LTV right?

June 16, 2008 02:54 PM
Rainer
26,709
Laura Moore Godek
Laura Moore Godek, PC

The distinctions are important to know.  Thanks for the clarification.

June 16, 2008 07:25 PM
Rainer
26,709
Laura Moore Godek
Laura Moore Godek, PC

The distinctions are important to know.  Thanks for the clarification.

June 16, 2008 07:25 PM
Rainer
82,260
Justin Williams
Loan Officer
Independent

Brandon - Great News!!  Hope you get the deal done and I am glad you are finding this loan programs useful!

Casey - 97% per sales price and FHA guidelines but keep in mind the appraisal is based on improvements and repairs done after the improved value.

Laura - Glad you found this useful thanks for commenting!

June 16, 2008 07:42 PM
Rainer
2,731
Maximiliano "Max" Carrillo
CRS GRI
AMor REALTY / North Carolina - Charlotte Metro - South Carol

Thanks for sharing Justin.  This can help bridge the gap between properties in move-in condition and REO's that won't even look at an FHA offer.

June 25, 2008 09:08 PM
Rainer
24,873
Charles G. Hennebeul
AMERICAN CASH SOLUTIONS INC

Great Points here..and many mortgage brokers that are not FHA steer their customers into subprime loans to get them cash out but its at a much higher unnecessary cost.

July 06, 2008 07:57 PM
Rainmaker
157,769
Vicki Pedersen
Providing Exceptional Real Estate Service
Pedersen Real Estate

Thanks for the information and clarification between the two programs.  The streamline is a great program.  I haven't done much with FHA's because I'm in California and up until very recently our housing prices have   been too high for FHA loans.  Now that houses are much more affordable, we are really starting to use FHA loans.

July 06, 2008 09:27 PM
Anonymous #11
Anonymous
Barry Morris - C&F Mortgage Corp

I have done alot of 203K full versions in the past and its alot of work.  The Streamline looks like its much easier now.  I do have a question though for anyone thats done a StreamLine...since there is no mandatory HUD Consultant required who determines what repairs are "necessary" to bring the property up to FHA standard?  Does this analysis rely then soley on the appraiser as far as what repairs he deems must be completed to meet FHA standards?  Thanks.

October 16, 2008 11:30 AM
Rainer
82,260
Justin Williams
Loan Officer
Independent

@ Barry - The Appraiser can verify the work has been done and the Lender + Appraiser will determine if the house is up to FHA conditions.

October 17, 2008 09:09 AM
Rainmaker
413,322
Mike Young
FHA 203k Consultant 707-812-7668
203kOnLine.com, covering California & most other states

While the streamline 203k is a great product a word to the wise... A streamline 203k with over $15,000 in work need a plan reviiewer... if you have trouble finding one just ask your consultant who by the way, is a Plan Reviewer too. If the plan reviewer or the appraiser finds things that require repair that weren't listed on the streamline scope of work this has just become a full consultation. There is a simple solution, just have the borrower be diligent when looking at the building with their contractor and include anything of a health or safety nature as well as what they want to do. I have many 203k projects completed and have seem most everyting since 1994. I like people talking up this program. Good job.

March 19, 2009 03:24 PM
Rainmaker
1,390,264
Maureen McCabe
Columbus Ohio Real Estate
HER Realtors

I want to reblog

I want to reblog this but I do not see the reblog symbol in the upper right corner? Has that changed? I want to say I told you so to a buyer who I suggested a 203K to....

feel free to delete this comment...

May 06, 2009 09:59 AM
Anonymous #15
Anonymous
leila

so Streamlined is the way to go...my loan officer said I need two appraisals, is this correct?

 

July 23, 2012 07:37 PM
Anonymous
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Rainer
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Justin Williams

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