How to Buy a Home and Finance Repairs

What is a FHA Streamline 203K mortgage?

The Federal Housing Administration or FHA created the FHA 203K  as a tool for providing government insured mortgages for one to 4 unit properties in need of major rehabilitation. The streamline 203K was develoed for homes requiring repairs on a smaller scale. With the FHA 203K (S), you obtain one loan to purchace the home as well as complete required repairs.


Please enable Javascript and Flash to view this Viddler video.


Sone of the Advantages to the FHA Streamline 203K Include:

  • Repairs are completed after closing with loan proceeds.
  • Great tool for REO Properties
  • Low down payment
  • One loan amount for the purchase or refinance & the repairs
  • Loan fees may be financed
  • Mortgage is FHA insured
  • No inspection necessary
  • No general contractor required
  • Mortgage amount may also be increased when combining EEM (Energy Efficient Mortgage) with Streamline 203k


  • Roofs, gutters, and downspouts
  • Upgrade or Replace existing heating, ventilation, and air conditioning systems
  • Upgrade or Replace Plumbing and Electrical systems
  • Flooring – (non structural, repair or replacement)
  • Painting – Interior/Exterior
  • Lead-based paint stabilization or abatement of lead-based paint hazards
  • Minor remodeling that does not involve structural repairs. Bathrooms and kitchens
  • New Appliances (Range and/or Oven, Range hood, Microwave,  Refrigerator, Trash Compactor and Washer/Dryer – built in or Free Standing)
  • Improvements for accessibility for persons with disabilities – remodeling kitchens and baths for wheelchair access, lowering kitchen cabinets, or installing wider doors (non load bearing walls only) and exterior ramps
  • Energy Efficient Improvements –
  • Appliances
  • Windows and Doors
  • Weatherization (weather stripping, etc) up to $2,000 over the 203k
  • Exterior decks, patios, porches and fences
  • Basement finishing and remodeling that does not involve structural repairs including waterproofing
  • Replacement of windows and doors and exterior wall re-siding
  • Mold Abatement or Termite Active Infestation repairs (tenting, etc)
  • Connection to Public Water or Sewer
  • Repair or replacement of septic tank


  • Pool repair or construction
  • Adding or repairing a driveway or sidewalk
  • Subfloors – this refers to the structural elements under the flooring – not the plywood base that the finish flooring is resting on.
  • Replacing posts in crawl spaces
  • Landscaping or similar site amenities
  • Repair of structural damage
  • New construction including room additions
  • Major rehabilitation or remodeling such as the relocation of load bearing walls
  • Any repair or improvement that will require more than 6 months to complete or will displace the borrower for more than 30 days.
  • Work that will not begin within 30 days of closing
  • Rehab activities that will require more than 2 draws
  • Repairs that require detailed drawings or architectural exhibits.

With the FHA 203K(s) you may be able to afford the home in the neighbor hood you desire, or upgrade to your dream kitchen. There are too many possibilites to metion. For more information about the FHA Streamline 203K , contact Doug Kaller @ 775-250-4421 or email I look forward to speaking with you.