The streamline 203K program allows you to purchase or refinance a home along with remodeling it or making repairs. The dollar amount of your repairs must be below $35,000 in order to qualify for the streamline program and nothing can be structural in order to qualify because this program does not require you to use a loan consultant, as the standard 203K does and it does not require you to provide any blueprints or plans. That being said, there are numerous repairs and changes you can do that will help you make your home safe, comfortable, and beautiful.
New or Repaired Roofing
The roof of your home not only provides curb appeal, it also keeps it warm and dry. If the home you purchase or even the home you live in has an older roof that is defective, the integrity of your home is at risk, which is why new roofing or even repairing your existing roofing is an allowed charge in the streamline 203K program.
The flooring in your home sets the mood for the entire house. If you have carpeting that is worn, dirty, and beyond repair, it can bring the entire vibe in the home down, not to mention the value. New flooring is allowable charge in the streamline program, enabling you to change flooring in any room, whether you change from carpeting to hardwood, laminate to hardwood, or carpeting to carpeting – the type does not matter as long as you are enhancing the value of the home.
It can be difficult to find a home that is accessible along with meets your cosmetic needs. Accessibility changes are an allowed charge in the 203K program. The changes cannot be structural, but there are many ways that contractors can make homes more accessible for wheelchairs and/or walkers without making structural changes.
The windows on your home provide a variety of benefits. They are obviously a part of your curb appeal because ugly windows can really be an eyesore. But they are also a major component of the energy efficiency of the home. Without proper windows, the home can have drafts and suck up energy by using the furnace and AC unit excessively. New windows or even window repairs are included in the streamline 203K program, which can have a dramatic impact on your home.
Repair or Replace Utilities
The furnace, AC unit and plumbing all play a major role in the function of your home. Without an efficient AC unit or furnace, your home could be uncomfortable and your bills high. Part of the 203K program enables you to repair or replace these items in order to make them more efficient and reliable for your home.
Removing Mold or Repairing Termite Damage
When you purchase a new home, the inspector will look for mold and/or termites. If either is found, it can be a deal breaker for any other type of mortgage as the home does not meet code. The streamline 203K program, however, allows these issues as long as mold abatement and/or termite damage repair is included in the repairs to be done on the home.
Energy Efficient Changes
Supplying the funds for energy efficient changes enables you to save money in the long run, allowing you to have more money to get your mortgage payments made each month. This is an incentive for the lender to provide you with funding for these changes under the 203K program, including the installation of solar energy panels, which also helps to defray the wear and tear that takes place on the utilities in the house as they will be used less with energy efficient changes in the home.
Adding Decks, Patios, and Porches
Adding decks, patios, or porches might not seem like an essential change to a home, but they provide more curb appeal and room for entertaining outdoors, which can help to enhance the value of the home. You can repair, replace, or add any of these items to your home under the streamline 203K program.
Appliances that are old and worn down do not work as efficiently as new appliances, which makes them a great investment for your new home. You can wrap the costs of the new appliances into your 203K loan, paying for them in your monthly mortgage payment and giving your kitchen a brand new look with this simple change.
Paint might seem like an odd expense to include in your 203K loan, but it can transform your entire home with just a change in color. If you want to change the entire interior colors or even the exterior siding color, you can do so by including the costs in your 203K loan.
These are just a few of the great changes you can make to your home and include in your first mortgage. As long as the changes are under $35,000, not structural, and do not include landscaping or the addition of a pool in your yard, they may be able to be included into your loan.