Thank you for visiting MyStreamlineK.Com, the internet's premier resource for information about the FHA Streamline 203k Limited Repair Mortgage. On the site you will find out what a Streamline K mortgage is, what it can do for you and how it works -- from prequalification to closing and beyond.

The FHA Streamline 203 K Limited Repair loan is a mortgage you can use to purchase a home or refinance the home you already own and build up to $35,000 worth of repairs and renovation costs into the loan. 

Are you looking to buy a home with a low down-payment?  Does it seem like all the homes within your price range “need some TLC?”  Or does your current home need repairs and updating and you’re concerned that there is not enough equity in your home “as is” to get enough cash for the repairs you need?  The FHA Streamline K mortgage may be just the thing for you..

Why use the Streamline 203 K?

Let’s say you find a house that you like that costs, say, $160,000 – well within your budget.  It’s a really nice house, but it “needs some TLC.”  That’s realtor-ese for “the folks who lived here didn’t do a thing to it in twenty years!”  You really like the house and it’s on the low end of your price range, but you just know that if you used your credit cards to do the renovation and redecorating, the minimum payment on your credit cards would end up being huge and it would take months to get everything done.  Enter the Streamline K.  With the FHA Streamline 203 K Limited Repair mortgage you can buy that house and finance up to $35,000 worth of repairs and renovation – all with one mortgage!

When you buy a house using the Streamline K, your down-payment will be based on the purchase price plus the cost of repairs.  Using the example above a $160,000 purchase price plus $35,000 worth of repairs equals $195,000.  Under current FHA rules, the minimum down-payment is 3.5% so in this case it would be $6,825.00.

The Streamline K saves you money!  If you bought the house using a regular FHA mortgage, your down-payment would be 3.5% of $160,000 or $5,600.00.  At an interest rate of 6.5% your monthly mortgage payment (for principal and interest) would be $975.91.  If you put $35,000 worth of work on credit cards, your monthly payment would be $1,400.00, bringing your monthly total to $2,375.91.  On the other hand, if you financed the repairs and the purchase with the Streamline 203 K, your monthly payment would be $1,189.39 – a difference of $1,186.52! 

The Streamline K creates instant equity!  With more and more homes going into foreclosure, more and more homes on the market are owned by the bank or mortgage company that foreclosed.  These homes are can often remain empty for a long time and tend to be in “less-than-perfect” condition.  The banks and mortgage companies sell these in “as-is” condition and will not make any repairs.  As a result, these homes tend to sell for far less than a comparable home in the same area that is in good condition.  Of course, it depends on the house, the area and the type of work that it is done, but there have been cases where a few thousand dollars worth of work has turned into tens of thousands of dollars worth of equity.

Protect your investment! A recent study by Harvard University's Joint Institute for Housing Studies showed that a significant portion of the nation's existing housing stock is more than 25 years old. That means there are lots and lots of furnaces, roofs, hot water heaters, air conditioning systems and home appliances that need to be replaced. After devoting a large part of your savings to your down-payment and closing costs, there's not much left for repair emergencies -- a measurable cause of mortgage delinquencies occuring during the first year of ownership. Why not address those potential problems up-front and protect your investment with a Streamline K?

The Streamline K saves you time and energy!  Let’s face it:  home-improvement work isn’t for everyone.  Unless you’re a tradesman – or have lots and lots of spare time – renovation and repair is probably something best left to the professionals.  Do you really want to be “that guy” (or “that guy’s” wife) whose house is a never-ending home-improvement project?  Even though “self-help” is permitted under Streamline K guidelines, homeowners are encouraged to use licensed, bonded and insured contractors to perform the necessary work.  It makes the process go more smoothly and you’ll be sure that the work gets done right the first time. 

You don’t have to “settle.” Unless you are building your own home, any home that you buy will have features that aren't exactly to your taste. With the Streamline 203k, you don't have to "settle on" a home with an outdated appliances and a 30 year-old decorating scheme. With the Streamline K, you can make that house all your own.

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