FHA 203K Streamline
Here is a link to a flyer on this topic
The FHA Streamline 203K loan can be used on purchases or refinances. This loan allows you to get extra money above the payoff amount or cost of the home to handle repairs or upgrades. This is great for buying fixer uppers or putting windows in your existing home, plus much more.
Loan amounts can go up to the maximun FHA loan limits in your county. For Contra Costa County that limit is $729,750. The maximum for repairs is $35,000 but a portion of that is not available to you as it is kept as reserves and then returned to the bank if unused, which reduces the balance on your loan.
The borrower gets 50% of the improvement proceeds at the loan closing and the other 50% after the repairs are completed. The repair work can be financed over and above the contracted sales price or appraised value with the total being added to the final loan amount, up to 110% of the value. Any repairs over $15,00 do require an inspection upon completion.
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Matt Steinmetz
www.mattsteinmetz.com
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