203K Program in PA- Traditional vs Streamline

By
Home Inspector with Reading, Pottstown, Norristown, Philadelphia

203K Program in PA- Traditional & Streamline

The FHA 203K loan program has become quite popular in Southeastern PA, particularly around Philadelphia, Easton, Reading & Lancaster.  The FHA 203K loan allows homebuyers to get financing for the purchase and renovation of a home with the convenience of one loan and one mortgage payment.   

Read more about the Benefits of the 203K program.old home PA

 

As a Home Inspector and 203K Consultant in PA, I sometimes get calls asking about the 203K Program in PA.  I get questions like-

"What's the difference between the traditional and streamline 203K?" 

"Do I need a 203K Consultant if I get the Streamline 203K?"

 

The Streamline 203K came along in 2005.  HUD came up with this new FHA-insured mortgage program and they called it the “Streamline (K)” Limited Repair Program.  This loan program allows homebuyers (and current homeowners who are refinancing) to borrow up to an additional $35,000 into their mortgage to improve or upgrade their home.


Traditional vs. Streamline 203K- so what's the difference?

With A Streamline 203k, there is no minimum borrowing threshold unlike a full or "traditional" 203K, but there is a maximum of $35,000, which must include a 10% contingency fund.  Renovations over $35,000 will require a traditional 203K.  Also, if you are doing foundation work, adding square footage to the property, making structural repairs, and other renovations along those lines, you will need a traditional 203K.  It's best to speak with a 203K loan specialist about your plans and see which program is right for you!

 

Depending on your lender's requirement, you typically aren't required to use a 203k consultant and general contractor.  I still have clients that contact me for a Feasibility Study.  Some clients also contact me for a Home Inspection to make sure they understand the home's condition and aren't missing any important repairs.   Of course, a home inspection or study is not required, but it might still be a good idea to protect yourself.

 

There are other differences between the traditional and streamline 203K program in PA and it's best to contact a 203k loan specialist to address your questions and get you qualified. 


Once you've decided to proceed with getting 203k financing, contact us and schedule a home inspection or 203k consultation!

 david the home inspector

David Artigliere with ARTI Home Inspections LLC is a 203K Consultant and Home Inspector in Reading, Philadelphia, Easton, Lancaster & Surrounding areas of Southeastern PA. 

He can be reached 7 days a week at 610-220-1907 or by visiting www.203kpa.com.

Posted by

david the home inspectorDavid Artigliere, owner of ARTI Home Inspections LLC, is a home inspector in Pottstown, Reading, Norristown, Royersford and surrounding areas. 

He is available 7 days a week and can be reached at 610-220-1907.

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difference between full tradtional 203k and streamline

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Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

Hi David, thanks for sharing your knowledge on the 203K Programs in PA.  Now am I right in thinking that these programs are the same for all of us?  Not just in PA?  Your advice to get that home inspection is right on too!  Probably even more so than ever... 

Pamela

Mar 06, 2012 08:46 PM #1
Rainmaker
855,255
Kwee Huset
Kwee Huset Realty - Venice, FL
Venice Florida Homes For Sale

David, My husband and I purchased our first home with 203K loan in 1990's, we paid $500.00 deposit that's it. Thanks for the explanation of the different between 203K traditional vs streamline . Have a great day.

Mar 06, 2012 10:07 PM #2
Rainmaker
95,681
David Artigliere
Reading, Pottstown, Norristown, Philadelphia - Collegeville, PA
ARTI Home Inspections, ASHI Certified Home Inspect

Pamela- the 203K program is through HUD, so I would assume it's the same in other states as it is in PA in terms of the benefits, requirements, etc. 

Kwee- Getting into a home with a $500 deposit.. now THAT's a great program!

Mar 06, 2012 10:16 PM #3
Rainmaker
2,881,685
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

David, the 203K program has helped many first time home buyers get into their first home, especially when their price point is low!   Great information!

Mar 06, 2012 11:01 PM #4
Rainmaker
95,681
David Artigliere
Reading, Pottstown, Norristown, Philadelphia - Collegeville, PA
ARTI Home Inspections, ASHI Certified Home Inspect

Joan- yes, the options for first time buyers are much greater with the traditional and streamline 203K... especially if they don't mind a little sweat equity!

Mar 07, 2012 04:53 AM #5
Rainmaker
209,670
Don Hess
KW Elite Keller Williams 1280 Plaza Blvd. Lancaster, PA 17601 - Quarryville, PA

It was years ago that i was involved in a traditional "203" loan for a client. Thanks for bringing me up to date.

Mar 07, 2012 06:18 AM #6
Rainmaker
3,880,558
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Very good information for home buyers.  Many of our clients are using the excellent FHA 203(k) financing to purchaser fix-up properties.

Thanks for sharing this information.

Mar 08, 2012 10:02 PM #7
Rainer
13,956
Paul Welden
203k Contractor Program - Tempe, AZ

David,

What are your opinions of using HUD approved 203k Consultants on the Streamline 203k?

Mar 13, 2012 11:36 AM #8
Rainmaker
95,681
David Artigliere
Reading, Pottstown, Norristown, Philadelphia - Collegeville, PA
ARTI Home Inspections, ASHI Certified Home Inspect

Thanks for reading, Don.

Roy- yes, this can be a deal saver for those fixer-uppers.

Mar 15, 2012 11:45 AM #9
Rainmaker
95,681
David Artigliere
Reading, Pottstown, Norristown, Philadelphia - Collegeville, PA
ARTI Home Inspections, ASHI Certified Home Inspect

Paul,

When purchasing a house whether on the 203k streamline or not, I always recommend a home inspection.  It's best to use someone who is also a 203K consultant so they can advise you on any issues they see (so they don't necessarily have to bring me out as a 203k consultant, just as a home inspector).  If it's a house you already own, it may speed up the process with the bank.

Mar 21, 2012 02:10 PM #10
Rainmaker
787,288
Gloria Todor
Century 21 Absolute Realty - Springfield, PA
& Doug Durren (484) 431-3686

Hi David, Good post about the 203k way to purchase a home that needs some fix up.  

Happy Easter by the way!

Gloria

Apr 08, 2012 01:53 AM #11
Rainmaker
95,681
David Artigliere
Reading, Pottstown, Norristown, Philadelphia - Collegeville, PA
ARTI Home Inspections, ASHI Certified Home Inspect

Gloria- thanks for reading!

Apr 18, 2012 07:06 AM #12
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David Artigliere

ARTI Home Inspections, ASHI Certified Home Inspect
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