FHA 203 (k) streamline

The FHA 203(K) Streamline mortgage is a great way to purchase a home that needs a little "TLC". This mortgage program is designed to allow homeowners to purchase a home and finance improvements for up to $35,000 into the mortgage.

A short list of the most popular eligible improvements under the FHA 203k streamline guidelines includes:

• Repair/replacement of roofs, gutters and downspouts
• Repair/replacement of HVAC systems
• Upgrade of plumbing and electrical systems
• Flooring
• Exterior decks, patios or porches
• Storm windows/doors
• Purchase and installation of new appliances
• Disability access improvements

These things are not everything that is eligible under the 203k program, just the most popular improvements that people use the program for.

Once the loan is approved and closed, the repair funds are held in escrow until payment is made to the contractor. You will have up to 3 months from your closing date to complete the work and no more than 2 payments.

The FHA 203 (K) can not be used for the following:

• 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 three (3) months; or Rehabilitation activities that require more than two (2) payments per specialized contractor. That would necessitate a "consultant" to develop a "Specification of Repairs/Work Write-Up"
• Improvements which require plans or architectural exhibits

So if you are looking to buy a home that needs some "TLC" and the repairs can be done for $35K or less this program might work for you. Regular FHA rates & guideline apply. You will need at least 3.5% down payment based on the after improved value. Seller is allowed to pay all the closing cost up to 6% of sales price. At least a 600 credit score is needed.

Wally Sears

American Enterprise Bank of Florida

wsears@aebmortgage.com

904-610-9771