Streamlined 203(k) Loan

The Streamlined 203k is a newer product which was intended to save the buyer or homeowner money by not requiring a ‘consultant’ for the bid specifications under certain circumstances. It allows a contractor to bid the project provided the work is relatively simple and is less than $35,000 in scope of work. However, a plan review is required if the work is in excess of $15,000.

What items remain ineligible for the Streamlined (k) program?
Properties that require the following work items are not eligible for financing under the Streamlined (k):

  • Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall:
  • New construction (including room additions);
  • Repair of structural damage;
  • Repairs requiring detailed drawings or architectural exhibits;
  • Landscaping or similar site amenity improvements;
  • Any repair or improvement requiring a work schedule longer than six (6) months; or
  • Rehabilitation activities that require more than two (2) pavments per specialized contractor.

Mortgagors may not use the Streamlined (k) program to finance any required repairs arising from the appraisal that do not appear on the list of Streamlined (k) Eligible Repairs.