FHA 203K Streamline vs. Full Loans

Over the past few years, we have had a lot of experience with the full range of FHA 203K Loan options.  It is a large part of our business and recently has accounted for nearly 50% of our residential projects.  The majority of our 203K work has been the 203K Streamline loan, however, there is another 203K loan that is used and it is called the Full 203K.  Typically, our projects have been 80/20 Streamline to Full 203k.  Below please find an outline of what work can typically be done under the loan and the difference between the Full and Streamline Loans.

FHA 203K Streamline
– Max Loan amount is $35,000
– Does not typically require a HUD 203K certified inspector
– Sample Scope of Work includes:  Kitchen Remodel, Bath Remodel, Painting, HVAC, Plumbing, Electrical, Roofing, Flooring, Doors and Windows, Appliances.  Most work is allowed with the exception of Structural Changes and Additions.

FHA 203K Full Loan
– Loan Amounts Greater than $35,000
– Requires certified HUD 203K inspector
– Covers all of the work allowed under a 203K streamline, plus, Additions and Structural Changes.

The project budgets we have worked on typically range in cost from $15,000-$35,000 for the Streamline loan and $50,000-$100,000 for the Full 203K loan.  The amounts allowed by the lender usually are determined by the purchase price, renovation costs, and property appraisal, but I would recommend going over the details with your lender as each one is different.

If you are considering a 203K Loan for a property purchase, we would be happy to provide guidance and expertise.  Please feel free to contact us me below for more information.

Brandon Leske
Hybrid Construction LLC
203K Loan Contractor, Tampa Bay