FHA Renovation Lending - 203(k) and 203(k) Streamline

Have you found a home that is the perfect size for you, in the ideal neighborhood, and in the right price range, but just doesn’t meet your expectations? Do you wish that you could remodel the kitchen, replace the shag carpet, update the appliances, or even fix the roof? Well, you can! The Federal Housing Administration (FHA) has established a loan program which allows you to fix up or remodel your primary residence.

Through the FHA 203(k) Standard/Full and 203(k) Streamline you can:

• Remodel kitchen and bathrooms

• Replace roofing, gutters, downspouts

• Replace/repair flooring, tile, carpet

• Build a deck or patio

• Replace windows and doors

• Replace exterior siding

• Replace heating/cooling systems

• Update household appliances

• Add bedrooms or garage

The FHA 203(k) Standard/Full and 203(k) Streamline is available to anyone who wishes to make improvements to their primary residence, not just those who are purchasing a new home.

What is the difference between 203(k) Standard/Full and 203(k) Streamline?

203(k) Standard/Full

• The 203(k) Standard/Full requires a minimum of $5,000 in repairs and there is no borrowing limit.

• Generally this option covers more extensive renovations, such as additions or structural renovations.

• When utilizing the 203(k) Full/Standard loan, the borrower is required to hire a general contractor.

203(k) Streamline

• The Maximum rehabilitation cost cannot exceed $35,000.

• Generally this option covers minor repairs, such as cosmetic renovations.

• A general contractor is not required, but no more than three specialty contractors are allowed.

For more information about FHA Renovation Lending, contact Chris Murphy at 720-529-1880 or chris@m2lending.com