What items are ineligible for the Streamlined 203k?
• 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. Mortgagors may not use the Streamlined 203k program to finance any required repairs arising from the appraisal that do not appear on the list of Streamlined 203k eligible work Items or that would: • Necessitate a “consultant” to develop a “Specification of Repairs/Work Write-Up”; • Require plans or architectural exhibits; • Require a plan reviewer; • Require more than six months to complete; • Result in work not starting within 30 days after loan closing; or Cause the homeowner to be displaced from the property for more than 30
