Using The FHA Streamline 203K to Purchase a Home

Finding and purchasing a home is a daunting task by itself especially when many homes are vacant and in need of repairs. One of the best ways to purchase a home that may need some improvements is by obtaining an FHA streamline 203K. While this loan is a fairly new option to the many different FHA mortgage programs, using the FHA streamline 203K to purchase a home is a great way to finance repairs that are necessary, such at those that have been found by the home appraisal or inspection.

The FHA streamline 203K allows borrowers to secure funds basic home improvements or repairs costing from $5,000 to a maximum of $35,000. It is intended to be a simpler and easier way to pay for rehabilitation provided that repairs are not structural. It can also be used to refinance into a mortgage that includes both the cost of the existing mortgage and cost of repairs. There are many different types of repairs that can be done with this loan such as:

1. Repairing or replacing of roofs, gutters, and downspouts.
 2. Repairing or replacing existing HVAC systems.
 3. Repairing or replacing of existing flooring.
 4. Minor remodeling, such as kitchens, as long as it does not involve structural repairs.
 5. Painting which includes both the inside and outside of the home.
 6. Different types of weatherization such as storm doors, storm windows, insulation.
 7. Purchasing new appliances, including ranges, refrigerators, washers and dryers, dishwashers and microwaves ovens.
 8. Accessibility improvements for the disabled.
 9. Lead-based paint stabilization if it is found.
 10. Repairing or replacing decks, patios or porches.
 11. Waterproofing and finishing basements.
 12. Well and/or septic repair or replacement.
 13. Electrical work.
 14. Plumbing work.
 15. Replacing siding.
While there are many acceptable items of repair or replacement that can be done with the FHA streamline 203K, luxury items such as swimming pools are not allowed. All work must be done by contractors and must comply with local construction laws.
The FHA streamline 203K with low FHA mortgage rates is the perfect addition to purchasing a lower priced home in need of repair or refinancing a home that needs improvements.
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