FHA 203k streamline presentation

1. Ed Gillespie
First Priority Financial
(916) 849-9200
916-849-9200
Welcome to the world of FHA Renovation loans!
• What is a FHA 203[k] Streamline loan?
• How can a this loan be used?
• Advantages of these loans
• The process

2. What is a Streamline 203[k]?
• Purchase or refinance a home and include additional
money for repairs or renovations.
•Limited repairs requiring relatively little expertise to
manage.
• Designed for a “streamlined” project where the home
can be occupied immediately after closing, and the
contractor will receive a single payment at
completion.

3. What is a Streamline 203[k]?
• Great for Handyman Specials, As Is or REOs
• Loan amount can go as high as 110% of the “after
improved” value
• Repairs may cost up to $35,000
• Owner occupied only
• 3.5% down
• Close before repairs begin

4. Acceptable repairs for the Streamline
203[k] include:
• Repair/replacement of roof, gutters and downspouts
• Repair/replacement/upgrade of existing HVAC systems
• Repair/replacement/upgrade of plumbing and electrical systems
• Repair/replacement of existing flooring
• Minor remodeling, such as in the kitchen or bath, which does not involve
structural repairs
• Exterior and interior painting
• Repair/replacement/upgrade of appliances (some limitations apply)
• Improvements for accessibility for persons with disabilities

5. The Process

6. Example of Loan Amount
Calculation:
Purchase Price $200,000
Total Rehabilitation Cost: $ 20,000
Total Acquisition Cost: $220,000
Maximum FHA Loan Amount: $212,300
Down payment: $ 7,700

7. Ed Gillespie
First Priority Financial
(916) 849-9200
916-849-9200
Questions about FHA Renovation loans?