energy efficient applicances2The purchase of a house in need of repairs is often a catch-22 situation; because most lenders won’t lend the money to buy a home unless the repairs are complete, and the repairs can’t be done until the house has been purchased.

Well, the FHA 203K streamline or traditional home loan solves the issue. The FHA 203K streamlined home renovation loan covers any non-structural repairs, updating and renovations. Unlike the FHA 203K traditional home renovation loan, the streamlined version doesn’t require home owners to hire licensed architects, contractors or engineers to complete the process. You simply need to select but not purchase the needed items and services, then submit them with your mortgage application. Once you’ve closed your lender will set up an escrow account that you can access to pay for the approved updates and services and all you need to do is insure it’s done within 30 days of closing escrow.

The streamlined FHA 203K loan involves significantly less paperwork than the traditional FHA 203K renovation home loan and FHA doesn’t restriction the program to any specific housing type or geographic area.

Some Projects covered by a streamlined 203(k) can include:

  1. Roofs and gutters;
  2. Heating, venting and air conditioning;
  3. Plumbing and electrical;
  4. Minor kitchen and bath remodels;
  5. Flooring and painting;
  6. New windows and doors;
  7. Improving energy efficiency;
  8. Adding a deck, patio or porch;
  9. Buying new appliances.

Yes, you can include new appliances in your loan! It’s a great opportunity for those who are considering older homes with dated and/or non-efficient appliances and upgrade to something energy efficient, without having to purchase with high interest rate credit cards or lay out a substantial amount of cash after you’ve already scraped up your down payment of just 3.5 percent. Oh and by the way, that 3.5 percent can be a gift or soft second.

You’ll also reap the benefit of reduced utilities in comparison to older non energy efficient appliances and if energy efficiency is your game don’t forget to ask your lender about adding an energy efficient mortgage to your FHA 203K streamline home renovation loan.

The FHA 203K streamline renovation home loan has a $35,000 limit for appliances, renovation and repairs, while adding and Energy Efficient mortgage request you can increase that $35,000 limit by about another 5 percent of the sale price for energy efficient repairs, improvements and appliance like a hot water heater, new HVAC, double door energy efficient refrigerator, stove or dishwater, even a new highly efficient washer and dryer can be included!

In today’s low interest rate environment using an FHA 203K home renovation loan will increase your house payment by less than five dollars for per $1000 borrowed. Try finding another financing option to secure $35000 to make a house your dream home and you’ll be hard pressed to find one where the repayment of less than $175 a month! Furthermore, it’s tax deductible and purchasing appliances to paying for repairs on your credit card isn’t. Be sure to ask a mortgage professional about the FHA 203K home renovation loan program and they’ll be glad to help you determining whether or not it fits your needs.


Homes for Sale REO Short Sales FNMA HomePath Properties HUD Homes USDA Homes Non-Warrantable FNMA FHLMC FHA VA USDA Approved Condominiums Co-Ops Town Homes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes Luxury Homes Real Estate Brokers & Agents Down Payment Assistance


Organizing your home shopping experience affords a wise decision making process. This simple home inspection tool makes your ultimate buying decision a smart one. To print this document click on “Open in New Window” located at the lower right corner; click on “File”; then click on “Print”. In the center of the screen you will have the option  to “Create A Printable PDF of the Presentation”.