Can I build the cost of repairs into my mortgage?


Can I Build the Cost of Repairs Into My Mortgage?


The FHA 203(k) Streamline loan product is intended to assist homeowners with basic repairs costing up to $35,000. (There is no minimum repair cost threshold.) It is designed to be an easy-to-use program for uncomplicated rehabilitation and/or improvements for which plans, consultants, engineers, and/or architects are not required. (More complex improvements are handled with the FHA 203(k) program that is described in another blog post.)


Use of the Streamline (K) program is limited to properties with the following work category items:


  • Repair/replacement roofs, gutters and downspouts
  • Repair/replacement/upgrade of existing HVAC systems
  • Repair/replacement/upgrade of plumbing and electrical systems
  • Repair/replacement of existing flooring
  • Minor remodeling, such as kitchens, which does not involve structural repairs
  • Exterior and interior painting
  • Weatherization: including storm windows and doors, insulation, weather stripping, etc.
  • Appliances – when at least $3,000 of basic home repairs are involved.
  • Appliances may include freestanding ranges, refrigerators, washers/dryers, dishwashers and microwaves and may not exceed $2,000 in total cost
  • Improvements for accessibility for persons with disabilities
  • When a borrower applies for a Streamline(K) mortgage based on repairs identified in a pre-purchase home inspection, he must offer the FHA appraiser information regarding planned repairs and a copy of the pre-purchase home inspection. He must confirm that the repair is necessary and may be accomplished without the need for a fee consultant, work write-up, plans or exhibits. Additionally, the appraiser must note any health and safety deficiency that the proposed repair plan does not address.


Repairs must comply with all local codes and ordinances and the borrower and/or contractor must obtain all required permits prior to the commencement of work.

Any questions? or 610-737-2310

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