FHA 203k Streamline: What’s in a Name.
You might have heard the term “streamline” associated with FHA but did you know FHA has two types of streamline loans?
There is the FHA 203k Streamline, used for renovation and remodeling, and there is the “regular” FHA Streamline used for refinancing an FHA loan. Both are designed to reduce the processing time in getting an FHA loan but they are very different loan products and should not to be confused with one another.
FHA Streamline
With no mention of the 203k, the FHA Streamline is just a standard FHA loan without any renovation funds included. What makes it a streamline is that you are replacing your existing FHA loan with another with no cash out but with better terms such as lowering your payments. Because of that your FHA lender can streamline the loan process without an appraisal as it is an FHA refinancing another FHA loan.
FHA 203K Streamline
The 203k loan is an all in one loan and is used for financing a home as well as any renovation or remodeling needed for that home. There are two different types of 203k loans, the Standard 203K and the Streamline 203K. The 203k Streamline is designed to help you complete home improvement projects that are not structural and under $35,000. Because of the loans limitations it’s considered a streamline in comparison to its counterpart the Standard 203k, so your closing time and disbursements of funds should end up taking less time.
As far as the 203k requirements – 203k Streamline loan requirements and FHA 203k guidelines are similar to a Standard or “regular” FHA loan without any rehab funds. FHA 203k Streamline rates are also comparable to Standard FHA loans without any rehab funds as well.
The FHA 203k Streamline is a great loan for both purchases and refinances. It can cover most kitchen, bathroom, heating, cooling, plumbing, electrical, roofing, flooring, and painting home improvement projects plus the purchase and installation of appliances. But not to fear for the renovation projects not covered in the 203k Streamline loan, as the full Standard 203k is still at your disposal. So selecting an FHA 203K Lender who can do both the Standard 203K and the Streamline has its advantages.
More About The FHA 203K Loan!
How To Qualify For the FHA 203K Loan
Roll your Repairs & Renovation Costs into One Home Loan For Purchase or Refinance!
FHA 203K Loan Requirements
What Are FHA 203k Loan Requirements and Guidelines for Qualifying?
FHA 203K Loan Calculator
The FHA 203k Calculator is easy to use and easy to read your results.
FHA 203K Loan Limits
FHA 203K Loan Limits 2024 In Your Area. Just enter your county & state.
Do you pay the overage on a 203K loan? Say a house is listed at $125,000 and you offer $140,000 does that overage come out of pocket or can that 203K loan cover it on a HUD purchase?
Mitch Asked:
Do you pay the overage on a 203K loan? Say a house is listed at $125,000 and you offer $140,000 does that overage come out of pocket or can that 203K loan cover it on a HUD purchase?
203k Mortgage Lender’s Answer:
Hi Mitch,
It’s not uncommon to get into a bidding war and exceed the list price which your lender should not have an issue with as long as the new sale price is addressed and justified within the appraisal to warrant the overage.
In this case though you mentioned it’s a HUD purchase. HUD homes for sale will typically already have an appraisal on the property so any offer over the HUD list price will probably also be over the current appraised value and then “cash would be required at closing” to make up the difference.
Best of luck
what are the credit score requirements for a 203K loan in 2011?
TR Asked:
what are the credit score requirements for a 203K loan in 2011?
203K Mortgage Lender’s Answer:
Credit score requirements for a 203k loan in 2011 can range from one 203k Lender to another and on whether it’s a single family home or 2, 3 or 4 units. But if you have a minimum 640 middle credit score between the three major credit bureaus then you should be okay with just about any 203k Lender.
This is a good question considering there is “NO” minimum credit score on FHA loans but yet all lenders seem to have their own policy on what is acceptable to them. You can find more information regarding qualifying on the blog at: FHA 203k Loan requirements
203K Mortgage Lender