FHA Streamline 203K
For our clients that are looking for that fixer upper we offer a FHA Streamline 203k loan program.
FHA Streamline 203k loans allow the buyer to finance anywhere from $5,000 to $35,000 in Upgrade/Repair money in the loan. Upgrade/Repair money can be used towards appliances, flooring, roofing, electrical, plumbing, kitchen updates, painting etc. Buyer would have to find a licensed and insured general contractor to put a bid together for all the upgrade/repairs that buyer is looking to do. Contractor should be familiar with FHA guidelines.
At closing the general contractor will receive a check for half of the repair money that was financed for the upgrade/repairs. The buyer/contractor will have up to 6 months after closing to complete upgrade/repairs to FHA standards. Once upgrade/repairs are complete the FHA licensed appraiser will go back out to inspect. If everything meets FHA standards the other half of the upgrade/repair money will be released to the contractor.