Renovation / Rehab Loans - FHA 203k streamlined explained

I think this product deserves some more attention so I decided to repost. We've had much success with it in the last recent couple months. The closings don't appear to be delayed much if any because of the product. We've been running into 45-60 day escrows because of last minute problems with buyer paperwork or banks not responding. Other than that, smooth sailing! It's proven that when working with buyers not only do they need their own down payment, but they also should have monies available for expenses incurred on top of what's financed through the loan as problems arise mid project. Just a word of caution.

203k STREAMLINE

• Used for minor cosmetic work
• Should ideally be used for no more than 3 jobs total
• No consultant / engineer / architect required
• Property cannot be vacant for more than 30 days.
• Work must be completed within six months.
• Work must be professional.
• If job requires a permit, borrowers must get a permit and a sign-off.
• Work must commence within 30 days from closing.

Eligible Repairs & Improvements

• Roofs, gutters and downspouts
• HVAC systems (heating, venting and air conditioning)
• Plumbing and electrical
• Minor kitchen and bath remodels
• Flooring: carpet, tile, wood, etc.
• Interior and exterior painting
• New windows and doors
• Weather stripping & insulation
• Improvements for persons with disabilities
• Energy efficient improvements
• Stabilizing or removing lead-based paint
• Decks, patios, porches
• Basement completion and waterproofing
• Septic or well systems
• Purchase of new kitchen appliances or washer / dryer

Repairs Not Permitted

• Landscaping or yard work
• Major remodeling
• Moving a load-bearing wall
• Room additions or add-ons to the home
• Fixing structural damage

Disbursement of Payments

• Maximum of two payments to each contractor, including the borrower, providing the borrower works under a "self help" plan.
• No more than a 50% advance is allowed.
• Do-it-yourself allowances do not include labor; only materials costs are allowed.
• Final payment is paid after submission of evidence of payment to sub-contractors / suppliers or other possible lien claimants.

Good Luck and as always feel free to contact me directly with any questions you might have regarding my postings or products!