A) PA FHA 203k Streamline Rehabilitation loans - borrow up to $35,000 to repair a home you are purchasing or refinancing in Pennsylvania.

B) PA FHA 203k (full) Rehab loans - borrow up to $300,000 for major rehabilitation a home you are purchasing or refinancing in Pennsylvania.

Both loans allow you to finance additional funds into a mortgage to improve or upgrade a home.

Purchase maximum 96.50% LTV and refinance maximum 97.75% LTV.

    Value of the property is the lesser of: 

• The "as-is" appraised value of the property, plus the HUD-approved cost of rehabilitation.
• 110% of the "as-completed" appraised value of the property.
• If the borrower has owned the property for less than a year, the acquisition cost must be used to determine the maximum mortgage amount.

For repair costs not exceeding $15,000, the lender is not required to perform, or have others perform, inspections of the completed work.  Inspections are optional. 

620 minimum credit score.

The borrower must use one or more contractors to complete the repairs. “Self-help” arrangements, in which the borrower performs the work, are not to be approved unless the borrower can sufficiently demonstrate that he or she has the necessary expertise and experience to perform the work competently.

The borrower must provide a written cost estimate(s) and references from a duly licensed and bonded contractor(s) for each specialized repair or improvement.  Those repairs and improvements must meet any local codes and ordinances and the mortgagor and/or contractor must obtain all required permits prior to the commencement of work.

With a 203k Streamline two draws are made.  50% up front and 50% at completion.  203K streamline is for non-structural repairs up to $35,000 total.  An example would be a new kitchen, appliances, energy improvements, lead paint remediation, or house painting.

Properties that require the following work items are not eligible for financing under the Streamlined 203(k).  You must use a 203(k) regular loan for these improvements:

• Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;
• New construction (including room additions);
• Repair of structural damage;
• Repairs requiring detailed drawings or architectural exhibits;
• Landscaping or similar site amenity improvements;
• Any repair or improvement requiring a work schedule longer than six (6) months; or
• Rehabilitation activities that require more than two (2) payments per specialized contractor.

Home