If you are thinking about buying a REO property that needs repair, FHA's 203(k) rehabilitation loan or it's simplified alternative, the Streamlined(k) may be a good option for you. FHA's simplified Streamlined(k) program for small-scale repairs is the perfect option for most HUD REO sales. For the major repairs & more complicated renovation plans, the Standard 203(k) program is the option.
HUD Homes, like the majority of property re-sales, require some level of repair. FHA's Streamlined (k) program allows the buyer to finance both the purchase and the cost of minor repairs and/or upgrades through a single mortgage. While there is no cap on repairs for the Standard 203(k), the Streamlined (k) allows for repairs from $1 up to $35,000.
For the Streamlined(k) option, homebuyers identify their repair needs, which may include: new carpet; interior and exterior paint; new appliances; kitchen or bathroom remodel; exterior landscaping and other minor improvements.
A realtor or FHA approved lender will be able to answer specific questions about the Standard and Streamlined 203(k) loan program. To find out more, visit HUD's website.
Advanced Restoration is an experienced 203(k) Contractor in New York and was featured on NBC News4 New York.
