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.
"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 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.