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What improvements are eligible under the new FHA 203k Streamline loan program?

Streamline FHA 203k Eligible Property Improvements

Streamline FHA 203k Eligible Property Improvements

The FHA 203k Streamlined loan program is intended to facilitate uncomplicated rehabilitation and/or FHA 203k eligible property improvements to a home for which plans, consultants, engineers and/or architects are not required. The FHA 203k Streamline loan program includes the discretionary FHA eligible property improvements and/or repairs shown below:



FHA Streamline 203k Eligible Property Improvements:

  • Repair/Replacement of
  • 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

What property improvement items remain ineligible for the FHA 203k Streamline loan program? 
A Property that require the following work items are not eligible for financing under the Streamlined (k):

  • 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 (6) months; or
  • Rehabilitation activities that require more than two (2) payments per specialized contractor.

Mortgagors may not use the FHA 203k Streamline loan program to finance any required repairs arising from the appraisal that do not appear on the list of FHA 203k Streamline loan Eligible Work Items or that would:

  • Necessitate a “consultant” to develop a “Specification of Repairs/Work Write-Up”;
  • Require plans or architectural exhibits;
  • Require a plan reviewer;
  • Require more than six months to complete;
  • Result in work not starting within 30 days after loan closing; or
  • Cause the mortgagor to be displaced from the property for more than 30 days during the time the rehabilitation work is being conducted. (FHA anticipates that, in a typical case, the mortgagor would be able to occupy the property after mortgage loan closing).
For more information on what type of improvements are eligible under the FHA 203k Streamline Loan program contact your loan officer or discuss with an appraiser or FHA 203k consultant.

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