If that house you're looking to buy needs a little bit of TLC to make it "just right," or even to make it a little bit more to your liking, there is a rehab loan you can get to buy that house with as little as 3% down. The loan is called the Streamline 203(k) Limited Repair loan and here are a few of the important highlights:
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The Streamlined (k) program includes the discretionary improvements and/or repairs for both a purchase or refinance. Repair/renovation costs can go up to $35,000 with no minimum. Repair items and estimated costs must be included in the appraisal. Repairs greater than $15,000 require a final inspection.
Below are the repairs covered under this program:
- Repair/Replacement of roofs, gutters and downspouts
- Repair/Replacement/upgrade of existing HVAC systems
- Repair/Replacement/upgrade of plumbing and electrical systems
- Repair/Replacement of flooring
- Minor remodeling, such as kitchens, which does not involve structural repairs
- Painting, both exterior and interior
- Weatherization, including storm windows and doors, insulation, weather stripping, etc.
- Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
- Accessibility improvements for persons with disabilities
- Lead-based paint stabilization or abatement of lead-based paint hazards
- Repair/replace/add exterior decks, patios, porches
- Basement finishing and remodeling, which does not involve structural repairs
- Basement waterproofing
- Window and door replacements and exterior wall re-siding
- Septic system and/or well repair or replacement
The items that the program does not cover are:
- 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 months
- Rehabilitation activities that require more than two payments per specialized contractor.
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