Overview of program:
- Limited Repair Program
- 1-4 Units – Purchase and Rate/Term Refinances
- Less Documentation
- Elimination of HUD Consultant
- Less fees associated with repairs/product
- 1 Title Update
- Maximum of $35,000.00 in repairs (including financeable costs) & No Minimum
Streamline 203k Value Proposition:
- Solution for Appraisal Issues, required or desired repairs/updates and other improvements.
- Lend up to 110% of appraised value
- Homeowners can make the house they are buying into the home of their dreams…..paint, carpet, appliances, etc.
- Competitive advantage in the marketplace
Allowable Repairs:
- Roofs, Gutters, Downspouts
- HVAC Systems
- Plumbing, Electrical Systems
- Existing Flooring
- Minor Remodeling such as kitchens—no structural repairs
- Interior and Exterior Painting/Siding
- Weatherization including storm windows, doors, insulation, weather stripping, etc.
- Appliances—No dollar limit
- Handicapped Accessibility
- Lead Base Paint Abatement/Stabilization
- Repair, Replace, Add Exterior Patio/Porch
- Basement Refinishing and Remodeling does not require structural repairs
- Basement Waterproofing
- Window and Door Replacement
- Septic and Well Systems/Repair and/or Replace
Ineligible Work Items:
- Major Rehabilitation or major remodeling such as relocating a load-bearing wall
- New Construction including additions
- Landscaping or similar site amenity improvements
- Rehabilitation activities that require more than 2 payments per specialize contractor
Ineligible Transactions:
- Repair Does Not Appear on the Streamline 203K Eligible Work Items List
- Repairs that Necessitate the use of a Consultant to develop a Work Write Up
- Require Plans or Architectural Exhibits
- Require a Plan Reviewer
- Require longer than 6 months to complete
- Result in work not starting within 30 days of closing
- Would cause the mortgagor to be displaced for more than 30 days during the rehabilitation being conducted
Borrower Responsibilities:
- Selecting Contractor
- Cost Estimates for all the work being performed
- If a National Home Improvement Company is used, such as Home Depot, Sears, Lowe’s borrower must provide a detailed cost estimate, receipt or invoice
- Self Help allowed on case by case basis
Contractors Responsibilities:
Each contractor must complete all documents in the contractor package which include:
- Builder Validation Statement
- Homeowner/Contractor Agreement
- Provide copy of License (if applicable)
- Notice To Contractor
- W-9
- Provide Proof of Insurance
