The "Streamline 203K" loan program allows for limited repair work on eligible properties at the time of purchase or through refinancing. The maximum allowable cost of repairs under the FHA's 203K streamline loan program is $35,000. The entire cost of the eligible repairs are included as a part of the mortgage and can be financed by a FHA streamline lender. This fairly new renovation loan program from FHA provides both new homebuyers and exisitng homeowners financing to pay for necessary repairs without having to take on an additional loan.
Most of the cosmetic repairs acknowledged by a FHA inspector, consultant or appraiser are eligible under the $35,000 limit.
The 203K streamline loan is ideal for homebuyers considering the purchase of a HUD-owned home. The entire details regarding the program's guidelines and requirements can be found on the HUD's website under the 203k streamline section