Program: HUD Streamlined 203(K) Limited Repair
Detail Verified 12/13/17 - Last Updated 6/12/12
A program that permits homebuyers to finance up to $35,000 into their mortgage for home improvements or upgrades before move-in. Property repairs to be identified by a home inspector or Federal Housing Administration (FHA) appraiser.
This program is available statewide.
Who is Eligible for this Program?
Must have a valid social security number, lawful residency, be of legal age to sign a mortgage. Verifiable income assets, credit history and reasonable debt ratio. No minimum credit score requirement.
No income limits for qualifying. Verifiable sufficient income required. Income limits may apply with some down payment assistance programs.
Assistance amount is up to $35,000.
To purchase a dwelling and rehabilitate it. To purchase a dwelling and move it onto a new foundation and rehab it. To refinance existing debts and rehabilitate a dwelling.
Is this program for first time buyers only?: No
Property Eligibility Requirements
Loan limits determined by State and by County - Federal Housing Administration (FHA) guidelines apply.
Allowable property types: SFR, 1-4units, condos
All improvements must comply with Housing and Urban Development's (HUD) Minimum Property Standards. Work must begin within 30 days of execution of the agreement.
Benefit: Allows homeowners to make minor repairs without exhausting personal savings. The revised maximum repair/rehabilitation amount recognizes the cost of making older homes more energy efficient.
Loan Term: 2 year ARM to 30 years
Homebuyer Counseling / Education Required: No
Owner Occupancy Required: Yes
Other Program Comments: If cost estimates are completed within 2 weeks of signing a sales contract, the loan should close within 60-90 days, asuming there are no title problems and the borrower qualifies.There are no increases to cost available during the rehab phase.