How to Buy a Home and Finance the Required Repairs
What is FHA “Streamline(K)”? The 203(k) program has been the primary tool of the Federal Housing Administration (FHA) for providing insured mortgages for the purchase or refinance of single-family properties (one to four units) in need of major rehabilitation.
But what if a smaller scale of repairs is required? The Streamline(K) loan program is a simplified 203(k) that was developed to specifically address these needs. With the Streamline(K) program you obtain one loan for the purchase (or refinance of an existing debt), and the amount necessary to complete the required repairs.
Below are some of the advantages this program offers
Repairs are completed after closing with loan proceeds.
- Great tool for REO Properties
- Low down payment (a minimum investment of only 3%)
- One loan amount for the purchase or refinance & the repairs
- Loan fees may be financed
- Mortgage is FHA-insured
- No inspection required
- No general contractor required
Mortgage amount may also be increased when combining EEM (Energy Efficiency Mortgage) with Streamline(K)
If you would like more information on the Streamline(K) please visit www.hud.gov , www.espanol.hud.gov , or call one of the homeownership centers listed below.
- Santa Ana Homeownership Center (888) 827-5605
- Denver Homeownership Center (800) 543-9378
- Atlanta Homeownership Center (888) 696-4687
- Philadelphia Homeownership Center (800) 440-8647