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Understanding Streamline-K Loans

If you've been passing up buying homes that require cosmetic repairs for lack of funds to fix them up, FHA has a program for you. Not to be confused with FHA's much more complicated 203K program, a Streamline-K loan eliminates much of the paperwork and simplifies the process to obtain rehab funds.

How Does a Streamline-K Loan Work?

It used to be that you bought a home and then applied for a home equity loan to fix it up, resulting in two loans. But many lenders won't make rehab loans. Some won't fund equity loans at closing, especially if there is no equity.

Eligible Repairs & Improvements

The Streamline-K loan allows for simple repairs that can be easily estimated and completed. Many are considered light cosmetic repairs, but some will require hiring a licensed contractor if it falls out of the borrower's area of expertise. Here is an approved list of repairs / improvements from HUD:

Special Conditions & Terms

Repairs Not Permitted

Requirements to Perform the Work

Disbursement of Payments

Reasons to Apply For a Loan Below $15,000

Students - Home Buyers - Newly Married - Divorced - Military - ID Theft Victims - Parents