The FHA 203k streamline program was designed for people who are interested in buying a home that is in need of a few repairs that are not “structural” and would require major work. The FHA 203k program is designed for homes in need of major work, the FHA 203k Streamline is just designed for work like carpet, paint, kitchen, gutters, etc.
Here are the most common FHA 203k Streamline repairs.
So how much money can you get for repairs with the FHA 203k Streamline program? A total of $35,000.
Now, at first glance, that might seem like you can spend $35,000 on contractor labor and supplies – but that isn’t so. That $35,000 includes bank fees.
FHA 203k Rehab Cost Must Include ALL Of The Following AND Can’t Exceed $35,000:
- Cost of the construction supplies
- Cost of the labor of the contractor
- 10% contingency fee
- $100 final inspection fee
- Up to 1.5% supplemental origination fee
If you add all of these together, you will get a number that says that the total cost of materials and labor can’t exceed $31,257.
So make sure that when you budget for the FHA 203k Streamline program, you know that $35,000 isn’t really $35,000 – it is really $31,257 after you subtract all of the fees.
Which is kind of the way everything seems to be. A fee here, a fee there… yeah, we have a fee for that.