Can this program be used for repairs and improvements on purchases of HUD Homes?
Like the regular Section 203(k) program, Streamlined (k) may be used for single-family housing sold by HUD.Â REO properties that have been designated by FHAâ€™s Management and Marketing contractor (M&M) as â€œinsurableâ€ with repair escrow ($5,000 or less in required repairs) or â€œuninsurableâ€ (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 outlined in this Mortgagee Letter.
What improvements are eligible under the new Streamlined (k) program?
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required.Â The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:
Â· Repair/Replacement of roofs, gutters and downspouts
Â· Repair/Replacement/upgrade of existing HVAC systems
Â· Repair/Replacement/upgrade of plumbing and electrical systems
Â· Repair/Replacement of flooringÂ
Â· Minor remodeling, such as kitchens, which does not involve structural repairs
Â· Painting, both exterior and interior
Â· Weatherization, including storm windows and doors, insulation, weather stripping, etc.
Â· Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
Â· Accessibility improvements for persons with disabilities
Â· Lead-based paint stabilization or abatement of lead-based paint hazardsÂ
Â· Repair/replace/add exterior decks, patios, porches
Â· Basement finishing and remodeling, which does not involve structural repairs
Â· Basement waterproofing
Â· Window and door replacements and exterior wall re-siding
Â· Septic system and/or well repair or replacement