What if a foreclosure or short sale needs repairs?
Are you tired of looking at foreclosures that you can’t afford because you don’t have the money for needed repairs? Now you can do something about it. An FHA 203(k) Streamline Limited Repair Rehab Loan allows a customer to (1) purchase or refinance a home and (2) make limited upgrades and repairs to the property under one loan. With the Streamline, there is no minimum amount for the repair costs but the maximum is $35,000. FHA also has a Standard Rehab Loan that requires a minimum of $5,000 in repair costs and allows for more than $35,000 but it is much more involved. I recommend staying under the $35,000 if possible.
Under a Streamlined Rehab loan, many repairs are allowed including replacement of roofs, gutters and downspouts; replacing floors; minor remodeling (which does not include structural repairs); both interior and exterior painting; and purchase and installation of appliances.
What repairs aren’t allowed? Important items include major rehabilitation; new construction; repairing structural damage, and pool improvements and repairs including screened cages and landscaping.
For additional questions on eligible and ineligible repairs under both the Standard and Streamlined Rehab Loans this link will provide the answers: http://www.hud.gov/offices/hsg/sfh/203k/faqs203k.cfm
And please don’t hesitate to contact me if I can be of further help.