• Minimum Down Payment: Can come from Immediate Family, Labor Union, Employer Group, Non Profit 501C3 and other approved sources

  • Up Front Mortgage Insurance (MI) of: 1.75%, added to Loan

  • Monthly Mortgage Insurance (MI) of: .85%

  • Maximum Loan Amount SFR: Loan amounts are set by counties. In many Washington State counties, the limit is $567,500. Loan amounts above $417,000 have additional costs and or rate increases.

  • Maximum Seller Concession: 6%

  • No minimum FICO requirements but most investors are holding to their own established minimum credit score corporate overlays

  • Declining market is not observed by FHA

  • Refinancing is allowed, at high loan to value ratios

  • Both Fixed-Rate and Adjustable-Rate loans permitted

  • Roof & Pest inspections not mandatory unless noted by appraiser or called for in contract

  • No Income Limits

  • Do not have to be a first-time buyer

  • Must be owner occupied

  • No requirement for reserves

  • Borrower can now pay previously non-allowable fees “processing, doc prep, underwriting, lender fees” *Except Tax Service fee

  • Non-traditional credit “telephone, PG&E, etc” allowed if there is no FICO available. Rates and fees are adjusted higher for these loans.

  • Non-Occupying co-borrowers allowed

  • Can utilize other state, county and city programs, and Energy Efficient Mortgage options

  • FHA requires 90 days from date of trustee sale before purchase contract can be written unless REO is a federally chartered bank

  • FHA Loans are Assumable




FHA’s Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 of home improvements into their mortgage to renovate, improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily finance property repairs or improvements, such as those identified by a home inspector or FHA appraiser. FHA 203(k) can help:

  • Repair a run-down or damaged property

  • Increase sales with your buyers and sellers

  • Expand your pool of buyers

  • Help deliver the dream of homeownership to many in need

What Does it Cover?

The FHA Streamline 203(k) covers most non-structural improvements up to $35,000, with a minimum improvement of $5,000 necessary. Covered improvements include:

  • Roofs, gutters, downspouts

  • Heating and air conditioning

  • Upgrade/repair plumbing, septic, well, and electrical systems

  • Replacement of flooring, windows, doors, siding

  • Weatherization, painting, basement waterproofing

  • Minor remodels that don’t involve structural repairs

  • Purchase and installation of appliances

  • Handicapped accessibility improvements

*Anything above $15,000 in total repair cost does require a HUD inspector. The cost of a HUD inspector is roughly $500, which can be added into the loan as well.

What items are ineligible for the Streamline 203(k) program?

Properties that require the following work items are not eligible for financing under the Streamlined 203(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 6 months

  • Rehabilitation activities that require more than 2 payments per specialized contractor

Borrowers may not use the Streamline 203(k) program to finance any required repairs arising from the appraisal that are not listed on the list of Streamline 203(k) 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 6 months to complete

  • Result in work not starting within 30 days after loan closing

  • Result in the borrower to being 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 borrower would be able to occupy the property after mortgage loan closing.

Application Process

  • Homebuyer locates property and signs a sales contract (purchase subject to home inspection)

  • Homebuyer schedules an inspection with a 203(k) cost consultant, home inspector or appraiser to budget the home improvements

  • Once budget is approved by borrower, cost consultant completes the work write-up and prepares contractor bid packages to obtain cost estimates

  • Appraiser uses work write-up to determine “as-is” and “improved value”

  • Loan closes with an FHA-approved 203(k) lender

  • Construction begins within 30 days of loan closing.

  • Must be completed in 6 months or less

Please visit our Disclosures page for more details for all loan types.