2. What is the FHA 203K?
•203k is an FHA qualification rehab loan.
This loan can be used for purchases or
refinance projects and was originally
designed for neighborhood revitalization

3. Why should realtors use 203k?
• Allows you to sell homes that are not in livable
condition. The only buyers who can buy homes that are
not in livable condition are cash buying investors or
203k buyers…Huge opportunity for your buyers.
• Combines funds to purchase or refinance along with the
funds needed to repair or rehab the home
• Benefit in Listing Presentations
• Helps to solve repair issues that come up in contract
negotiations
• Unique underwriting only available with FHA
• Great potential for repeat business
• Serves the first time home buyer‐they don ‘t have
homes to sell so they can still buy‐this is a huge
segment of the current market

4. 203k Use Standard FHA
Qualification Guidelines
• Only 3.5% down
• 3.5% can be a gift from family
• Dose not require reserves
• 620 min credit score

5. More details
• One closing. Rehab funds are disbursed as the work is
satisfactorily completed
• Can be used to update homes, correct health and safety
issues, pay for higher cost items such as a roof, etc
• Loan amount is the lesser of the purchase price plus rehab
costs X 96.5% or 110% of the improved appraised value
• Rates are a little higher

6. Streamline 203k?
• Maximum repair amount is $35,000
• Consultant not required
• Improvement cannot be structural
• Only two draws‐50%, 30‐60 days after closing
and 50% after final inspection b y appraiser
• Project must be complete in 6 months
• Project must start within 30 days of closing

7. Eligible Repairs for Streamline
• Roofs, gutters, downspouts
• HVAC replacement
• Upgraded plumbing or electrical
• Flooring
• Kitchen remodel without structural changes
• Painting
• Weatherization
• Appliances
• Accessibility improvements for individuals with disabilities
• Lead‐based paint abatement
• Basement finishing
• Deck, patios, porches
• Basement waterproofing
• Septic tank repair or replacement

8. How does it work?
• Approved Contractor List
• Plan of 45 days from the contract to close
• House under contract – need FHA addendum to
the contract
• Borrower, inspector and contractors put
together an improvement plan
• Plan is sent to appraiser who give us an after
improved appraised value
• Borrower picks one of our approved
contractors
• Once the above items are complete, the loan is
sent to underwriting