The FHA 203K Streamline Loan – The Basic Features Of THe FHA 203K Streamline Loan
The FHA 203K Streamline Loan is becoming the favorite choice for buying a home that needs some repairs or cosmetic updating. It is also great if your were planning on selling your home but have decided, because of the poor real estate market, to stay in your home and make improvement. It can be used for refinancing your repairs in to the new mortgage.
The FHA 203K Streamline Loan is a lot less complicated than the standard FHA 203K Loan. It has a maximum limit of $35,000 and you can’t do structural repairs. The author of this article gives you a brief description of the FHA 203K Loan.
If you want to know what repairs are eligible for the FHA 203K Streamline Loan, you can click "FHA 203K Rehab Loan- You Can Buy A Fixer Upper Home With A FHA 203K Rehab Loan!"
Features of the FHA 203K Streamline Refinance Program
The FHA 203k Streamline program has gained popularity recently due to the number of foreclosed homes that are being purchased that are in need of repair. The FHA 203k streamline program can be utilized both as a FHA refinancing option as well as a FHA new home purchase option.
An increasing number of foreclosed homes are using the popular FHA 203k streamline program due these homes needing repair. It is available for either a new home purchase or a refinance.
The FHA 203k Streamline is a different from the standard Section 203k loan due to it only permitting repairs costing a minimum of $5,000 up to a maximum of $35,000. Thus, the total mortgage loan will permit for property acquisition with up to $35,000 of the loan proceeds to be applied toward repairs or property rehab.
Some of the more common repairs completed using the FHA 203k Streamline program include:
Repair rain gutters and downspouts
Repair/upgrade of existing HVAC systems
Minor repairs of plumbing and electrical systems
Minor repairs of existing flooring
Minor remodeling that does not involve structural repairs
Exterior and interior painting
New appliances – items such as free-standing ranges, refrigerators, washers/dryers, dishwashers and microwaves but may not be greater than $2,000
Improvements for people with disabilities/handicaps
In addition to the FHA 203k streamline program, there is a FHA 203k standard program – which will allow more than $35,000 to be used in repairs but requires more "major" work.
The FHA 203k standard includes work such as Structural improvements including room additions, re-wiring, major landscape work, patios, decks, terraces, energy conservation improvements, steel insulated exterior doors, rehab or improvement of a detached garage.
Some highlights of the loan include:
The borrower is allowed to finance six months of payments into the loan
Up to six percent of seller contributions are allowed on purchase loans.
As you can see these are some very attractive loans for homebuyers as well as existing homeowners when a property needs a little rehab.
Author: Mario Olivera Mario is an avid investor in real estate. He and others suggest borrowers look for FHA Jumbo Loans and comparing FHA Mortgage Rates from trusted lenders in your area.
Article Source: http://EzineArticles.com/?expert=Mario_Olivera
Comments: The FHA Streamline Loan is good way to finance HUD Homes for Sale. You can get more information of how to buy HUD Homes and and use the FHA 203K Streamline Loan for the financing by clicking "Streamlined FHA 203K Loan-Great Way To Finance Home Repairs!"