What is the difference between the FHA 203k and FHA Streamline

FHA 203k streamline loan, now called limited, is designed for the the purchase (or refinance) of a one to four unit home along with a finance package to renovate, upgrade a home with as little complications as possible. The FHA 203k streamline loan is as the name implies . . . a “streamline” rehabilitation loan. The minimum home improvement cost is $5,000, up to a maximum of $35,000 that can be financed in the 203k mortgage.

Home buyer(s) are not required to employ certified consultants, registered engineers or architects. The appraiser will make a list of repairs and/or improvements. A time schedule will be determined for the completion of the work.

Upon completion of the  repairs and/or improvements, the final inspection will be performed by the appraiser.

Structural repairs are not allowed under a Streamlined K, although, making insignificant repairs may be permitted.

The FHA 203k loan (full/standard) is used for structural improvements, major renovation. There is a minimum $5,000 requirement for the eligible improvements on the existing structure on the property.