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clarification- 203k Streamline

Im hoping someone can clarify 203k Streamline loan for me.My lender says it ONLY covers repairs up to $35k & NO cosmetic / updating- not even new carpet.I read everywhere that the 203k Streamline covers light remodeling, painting, updating of bath/kitchens, etc.We currently are under contract with a home purchase, but we thought the 203k Streamline would cover the "improvements" we needed to do. We do still have 14 days to opt-out, but I would rather not if we canget some clarification. I hate to challenge my lender, but what I read doesnt quite match up with what theyare saying are the limits of 203k Streamline. Maybe rules have been revised that they are not aware of... by ami.gr_333_404 from Corona, California. Feb 22nd 2012 Reply


Donald LaPlume (dlaplume)
#6 ranked lender in New Hampshire - 47 contributions

203K streamlines do allow for flooring replacement along with a whole host of other items. I have attached a list below to reference. These are Eligible Streamline Improvements with our bank. If you would like to learn more about 203K Streamlines please feel free to take the free webinar we are hosting for new home buyers who want to do 203K loans this Saturday. You can sign up for the class at www.homebuyeruonline.com.There is nothing being sold at this webinar just pure content. If you would like more information before Saturday you can call me at 603-543-3700 ext 1. We do a lot of 203K loans in all 50 states and I'd be happy to guide you. Hope this helps,Don LaPlumeRepair/Replacement of roofs, gutters, and downspoutsRepair/Replacement/Upgrade of existing heating, ventilation, and air conditioning systemsRepair/Replacement of plumbing and electrical systemsRepair/Replacement of flooring, however the repair of sub-floors is not because it is considered structuralMinor remodeling such as kitchens that does not involve structural repairs and/or any change to load-bearing wallsExterior and interior paintingWeatherization, including storm windows and doors, insulation, and weather strippingPurchase and installation of appliances, including free-standing ranges, refrigerators, washers and dryers, dishwashers, and microwavesThe sum of all appliances cannot exceed 50% of the total cost of repairs (line B1 of the 92700 form.)If the appliances are included in a contractor bid, and the contractor bid meets the requirements that allow for an initial disbursement, 50% of the total contractor bid may be paid out at initial disbursement.If the borrower is obtaining the appliances directly, the payment is allowed only as a final disbursement; and a self-help agreement is required.Improvements for accessibility for persons with disabilitiesRepair/Replacement/Addition of exterior decks, patios, porches; provided any repairs do not involving replacing any feature that relies on the home's structural integrity. Basement finishing and remodeling that does not involve structural repairsBasement waterproofingReplacement of windows and doors and exterior wall re-sidingSeptic system and/or well repair or replacementPool repairs up to $1500. Lead Paint Mitigation

Feb 22nd 2012
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Shon Atabaki (ShonAtabaki)
#50 ranked lender in Washington - 95 contributions

Cosmetic updating that would be a nicety and not a necessity would not constitute an eligible repair or improvement under the 203k streamline guidelines.

Feb 22nd 2012
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#1 ranked lender in Florida - 778 contributions

I have seen deals where if the carpet was deemed not liveable, and that is usually discovered by the appraiser and would be included in repairs....hope this helps

Feb 22nd 2012
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Bill Ladewig (bill@yourfhaguru.com)
#360 ranked lender in California - 34 contributions

Carpets should be ok. As long as the improvement becomes a permanent part of the home and adds value it is allowed by the streamline 203k. Not allowed are structural improvements, changes the require permits or landscaping improvements on the Streamline.

Feb 22nd 2012
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Dan Paladin (dpaladin)
#1 ranked lender in California - 547 contributions

The short answer is yes...main difference between streamline 203K and the full 203K is no structural changes or plans allowed.....the "cosmetic" items are allowed.Hope this helps....RegardsDan

Feb 22nd 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,819 contributions

Your lender does not know what he/she is talking about. Perhaps, it is because THEY do not allow it. FHA does allow for all kinds of improvements in the 203k program. Generally, if the repairs/improvements require a permit, like structural alterations, additions or major reconstruction, then it cannot be a streamline. In a streamline 203k, 100% of the repairs can be cosmetic. Paint, carpet, appliances, floor coverings (tile and carpet, countertops, bath remodels, etc. If you want to do this, you should probable look for another lender that knows what they are doing.We are 203k specialists and lend in CA. Contact me and I will be happy to get this done for you. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Feb 22nd 2012
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Kevin Walton (kwalton)
#461 ranked lender in California - 5 contributions

Lenders put their own spin on the 203k loan, and this is your lender's spin. They can put overlays, additional rules, on the loan and roll it out to the public. You just have to find another lender who has the least amount of overlays. Don't challenge your lender, dump them. The lender will not change their guideline for you. Use a lender who also does both the 203k Streamline loan and the 203k Standard loan just in case the appraiser spots a structural issue like termite damage. I'm in SoCal and I originate 203k's as well, and I see this quite a bit. Termite damage repair is structural in nature, so if you are using a lender who only does 203k Streamlines, you're out of luck and will have to start from scratch again with a new lender, so not knowing what property issues await you, make sure your lender does both versions of the 203k loan. For more info feel free read up on the 203k at http://www.203kHomeLoanRehab.com Best of luck to you!

Feb 23rd 2012
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Yes, you can replace flooring with the Streamlined K...that's one of the easiest and most used repair items to include as the contractor/retailer is not required to be licensed. Gary Smith - 203(k) Consultant :: http://www.203kforum.com

Feb 26th 2012
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