Looking Out From the Garage: FHA 203K Streamline Renovation/Purchase

FHA 203K Streamline Renovation/Purchase

Ken has knocked a few posts out of the park recently.  This is another.  The 203K may be a great option to make that house that is "almost" into a house that "is"...  Ken and I have worked together and can get the job done for YOU...

So you or your client have found a home in a great area in the client's price range. Only one problem: it's in bad shape. The HVAC system is 50 years old, the roof is 40 years old and the windows may as well not even be closed. Plus the kitchen has vinyl floors in 3 different patterns and the counters are all laminate with burns and holes and scars.

Not to fear! Meet the FHA 203K Streamlined renovation loan.

Eligible Improvements Virtually any kind of improvement is eligible provided it becomes a permanent part of the real property and adds value. 


  • Additions to the structure
  • Kitchen or bath remodels
  • Finished basement or attic
  • Patios, decks or terraces
  • Roofing and landscaping
  • Safety, energy efficiency and electrical upgrades
  • Handicapped accessibility improvements


Luxuryitems are not eligible


  • Swimming pools, hot tubs, tennis courts, gazebos, barbecue pits, saunas or alterations to support commercial use
The maximum loan amount must be within the FHA loan amount maximum for the MSA where the home is located and must include the purchase price and the renovation amount. The maximum renovation amount is $35,000 and the minimum is $5,000. Under $5,000 we can do with an escrow of repair funds. A minimum of 10% contingency reserve is required and must also fit into the FHA loan maximums for the area where the property is located. (Any balance remaining on the contingency will be applied to the principal balance and may not be used for additional repairs.)

FHA 203K Streamlined Rehab/Renovation Loan

Yes, it takes a little longer to close an FHA203k Streamline loan than it does to close a standard FHA loan. If you are an agent and you are concerned about that extra couple of weeks just think of it this way: You may make a sale you would not have otherwise made. You may help a buyer get into a home in the area where they wanted to live instead of where they "had" to live. You can be a real hero for someone.

If you are in Georgia I can help you with the necessary paperwork and give you a short class in how to use the FHA 203K Streamline Rehab loan to purchase, sell or represent homes in today's economy. Never hesitate to call me at any time and I'll be happy to answer your questions.


Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683

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Comment balloon 6 commentsLane Bailey • November 19 2009 10:16PM


My Broker swears by these things and has our investor doing them. It must work they seem to make a lot of money.

Posted by Charles Stallions Real Estate Services, Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl. (Charles Stallions Real Estate Services Inc) over 9 years ago

Hi Lane, Thanks for sharing this, I hadn't seen it. It certainly does represent yet another handy tool we need to have available to help those buyers get from the "have to" to the "want to" of the available home selections.

Posted by William Johnson, San Diego Real Estate Voice, GRI CRS e-Pro CDPE (RE/MAX Associates) over 9 years ago

Thanks for sharing this.  Sounds like a good option for investors or home owners.  I'm certainly going to check it out.

Posted by Charles Perkins (Charles G. Perkins, CPA) over 9 years ago

People can keep in mind too that even though you might not be able to put in, for instanvce, a swimming pool, you can often repair such items with the 203k. Really a great program.

Posted by Stephen Kappre, Helping You Home (KW Hometown) over 9 years ago

Thanks Lane. Great information from Ken, and all the more reason to have a professional in your toolkit to advise your clients.

Posted by Susie Blackmon, Ocala, Horses, Western Wear, Horse Farms, Marketing over 9 years ago

Thank you all for the comments.  Ken is a great resource.

Posted by Lane Bailey, Realtor & Car Guy (Century 21 Results Realty) over 9 years ago