Standard 203K option is best for major structural repairs such as room additions, foundation repairs, fire damage, flood damage or major site improvements.
Streamline 203K option is best for non-structural repairs and can may allow you to qualify for a loan amount up to $35,000. These non-structural repairs would be repairs such as new paint, carpets, appliances, kitchen or bathroom remodels, plumbing, electrical work, and/or HVAC or septic systems.
Borrower Benefits
- Turn an average home into a dream home. Qualified homebuyers can improve less-than-perfect homes in desirable locations or address property shortcomings immediately without draining your savings.
- Make the home your own — removing the previous owner’s style. Everyone has different tastes — you don’t have to live with the previous owner’s choices.
- Fix things the previous owner may have ignored — windows, roof repairs, etc.
- Get more house for the money. REOs and foreclosures are still a large part of the real estate inventory. Buyers can take advantage of reduced home prices.
- Rolling rehabilitation costs into the mortgage allows borrowers access to repair funds at lower rates.
Product Eligibility
- Down payment as low as 3.5% of total amount of purchase plus costs of repairs
- Gift funds are allowed
- Seller may contribute 6% of purchase prices toward closing cost and pre-paids
- Purchase of owner occupied primary residence
- Commercial properties are not eligible
- Required $5,000 minimum renovation cost