Can the 203K FHA program be used for repairs and improvements on purchases of HUD REO homes?
– Like the regular Section 203(k) program, Streamlined (k) may be used for single family housing sold by HUD. REO properties that have been designated by FHA’s Management and Marketing contractor (M&M) as “insurable” with repair Escrow ($5,000 or less in required repairs) or “uninsurable” (with more than $5,000 but no more than $35,000 in required repairs) are eligible for the Streamlined (k) program provided that the repairs qualify as eligible work items. Can the Streamline (K) program be used for refinancing a current mortgage? – The Streamline (k) program is also available for mortgage refinance transactions including those where the property is owned free-and clear. Only credit qualifying “no cash out” refinance transactions with an appraisal are eligible for the Streamlined (k) program. The form HUD 92700 provides instructions for calculating the maximum mortgage for Streamlined (k) loans for purchase and refinance transactions. The requirements to use the lowest sales price with
