203K Streamline Loan - Rehab Program Overview
The 203(k) streamline loan program offers borrowers the resources to rehabilitate a home that may
be in need of repair, either the home that they currently live in, or that special fixer-upper
opportunity, without the extra cost or details as found in the regular 203k. One single loan is used
to pay for the purchase (or refinance) and the cost of renovating the home.
Made available to certain lenders by the U.S. Department of Housing and Urban Development
(HUD), the FHA 203(k) streamline program has already provided many buyers with the funds
necessary to buy their first home, or greatly improve a current home. The FHA 203(k) streamline
loan is available to borrowers of all income levels, to homeowners who plan to occupy the house,
and for homes with one to four units.
203K Streamline Eligible Borrowers:
Owner Occupants - Purchase - Refinance
Investors NOT allowed
Types of 203K Streamline Loans:
30 or 15 year fixed rates
One year ARMS
Single family dwellings
Mixed Use (Storefront)
1-4 Unit buildings- you can increase or decrease the number of units with this loan.
What improvements are eligible under the new Streamlined (k) program?
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or
improvements to a home for which plans, consultants, engineers and/or architects are not
required. The Streamlined (k) program includes the discretionary improvements and/or repairs
· Repair/Replacement of roofs, gutters and downspouts
· Repair/Replacement/upgrade of existing HVAC systems
· Repair/Replacement/upgrade of plumbing and electrical systems
· Repair/Replacement of flooring
· Minor remodeling, such as kitchens, which does not involve structural repairs
· Painting, both exterior and interior
· Weatherization, including storm windows and doors, insulation, weather stripping, etc.
· Purchase and installation of appliances, including free-standing ranges, refrigerators,
washers/dryers, dishwashers and microwave ovens
· Accessibility improvements for persons with disabilities
· Lead-based paint stabilization or abatement of lead-based paint hazards
· Repair/replace/add exterior decks, patios, porches
· Basement finishing and remodeling, which does not involve structural repairs
· Basement waterproofing
· Window and door replacements and exterior wall re-siding
· Septic system and/or well repair or replacement
What items remain ineligible for the Streamlined (k) program?
Properties that require the following work items are not eligible for financing under the
· Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;
· New construction (including room additions);
· Repair of structural damage;
· Repairs requiring detailed drawings or architectural exhibits;
· Landscaping or similar site amenity improvements;
· Any repair or improvement requiring a work schedule longer than six (6) months; or
· Rehabilitation activities that require more than two (2) payments per specialized contractor
Questions about rehab financing? Call The Rehabman (312) 401-5626
Jay Boetscher "The Rehabman"
Phone: (312) 401-5626
Fax : (847) 701-3280