FHA Section 203 (k) Streamline Rehabilitation Program

The Streamlined FHA 203(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. Due to the rehabilitation amount limitation of $35,000, eligible improvements are limited and can not include any major rehabilitation or remodeling, new construction such as a room addition, repairs to structural damage, or site amenity improvements. 
Repairs of this nature should be completed under the standard  FHA 203(k) program.  (Full 203(k) Not yet available)

Examples of eligible improvements are listed below (this list is not all-inclusive):

• Repair/Replacement of roofs, gutters, and downspouts

• Repair/Replacement/Upgrade of existing heating, ventilation, and air conditioning systems

• Repair/Replacement of plumbing and electrical systems

• Repair/Replacement of flooring

• Minor remodeling that does not involve structural repairs, such as kitchens

• Exterior and interior painting

• Weatherization, including storm windows and doors, insulation, and weather stripping

• Purchase and installation of appliances, including free-standing ranges, refrigerators,

    washers and dryers, dishwashers, and microwaves

• Improvements for accessibility for persons with disabilities

• Lead-based paint stabilization or abatement of lead-based paint hazards

• Repair/Replacement/Addition of exterior decks, patios, porches

• Basement finishing and remodeling that does not involve structural repairs

• Basement waterproofing

• Replacement of windows and doors and exterior wall re-siding 

Appraisal Requirements

       After Improved Value   (2 appraisals not required)

                Appraiser to provide appraised value with improvements – Appraisals is requested from the appraiser as a 203(k) streamline appraisal.  Provide appraiser with a copy of bid from contractor, prior to inspection.

•       As is value  

                Appraiser to provide an as is value in the body of the appraisal. (Purchase)

                Refinance- Use the Existing Liens as the “As is” value when this does not exceed a reasonable estimate of  value.

                (Not required for HUD-owned Property/ HUD contract sales price is the “AS IS value)

•       List Improvements/Repairs

                Appraiser to review and list on the appraisal as included repairs.   List of repairs to correspond with the Contractors Bid. 

Contact Rich for a Quote at 425-773-3100.      

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