FHA 203k Rehab Loan

One common rehab financing program is through the FHA. Since it is run by the government, it has a silly bureaucratic name – “the FHA 203K” program! Within this umbrella there are 2 versions of the FHA 203k – the FHA 203k Standard, and the FHA 203k Limited… the 203k Limited was formerly known as the FHA 203k STREAMLINE, but in 2017 I think they changed the name. The FHA 203k Limited is easiest to wrap your head around. The reason they call it “limited” is that your repair budget is limited to $35,000.00. So this is perfect for a 1st time buyer that wants to reach up into the edge of what is available pricewise, and tackle some immediate deferred maintenance. The only allowed types of renovations in the Limited program are “minor remodeling and non-structural repairs” < But actually the limited does allow for a roof replacement in many instances (provided the structural integrity of the property is not impacted). You can use funds to replace appliances, surfaces (carpet, flooring, countertops etc). Including inspection fees and Permit fees! The limited program allows the buyer to do the repairs yourself (although you cannot pay yourself for labor!)