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FHA 203K Streamline

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The streamlined FHA 203k program handles smaller projects. It can help homeowners with improvements that cost up to $35,000. There is a maximum value that determines property eligibility.

Eligible Improvements for the 203k Streamline:

  • 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 Renovations that do not involve structural repairs (Kitchen/bath remodeling)
  • Painting of interior and/or exterior
  • Weatherization, including insulation, storm windows, etc.
  • Purchase and installation of appliances
  • Septic system and/or well repair or replacement
  • Accessibility improvements for persons with disabilities
  • Lead-based paint stabilization of abatement of lead-based paint hazards
  • Repair/Replacement/Addition of exterior decking, patios, or porches
  • Basement finishing and renovation so long as it does not involve structural repairs
  • Basement waterproofing
  • Window and door replacements and exterior wall re-siding

Best for

Cosmetic repairs, remodeling up to $35,000

Requirements and Qualifications
How Do You Qualify for an FHA 203k Loan?

In general, an FHA 203k loan allows you to wrap your renovation costs into your mortgage with one loan and one closing. The amount you borrow is a combination of the price of the home and the estimated price of the repairs, including labor and materials.

Your down payment of 3.5 percent (the minimum required by the FHA loan program) will be based on the full loan amount and, of course, your monthly payments will be higher since you’re including repair costs in the same loan. You’ll need to qualify according to the standards of your lender, typically with a credit score of 640 or higher and with a maximum debt-to-income ratio of 43 percent, including the new monthly payment. The full loan amount must be at or below the maximum limit for FHA loans in your area, which in many housing markets is $417,500.