Now to the process for 203(k) streamline. After you have signed the sales contract (which is made subject to the home inspection), you'll schedule an inspection with a 203(k) cost consultant, home inspector and appraiser to budget the home improvements. Once you approve the budget, the cost consultant completes the work write-up and prepares contractor bid packages to obtain cost estimates. The appraiser uses the work write-up to determine "as-is" and "improved value." The loan closes with an FHA-approved 203(k) lender and the construction begins within 30 days of loan closing and must be completed within a certain amount of time (I am not sure if it's 3 or 6 months - I have heard different timelines and you have to check with your loan agent to make sure you get current information). It's important to work with an experienced cost consultant who is familiar with the time requirements of the 203(k) streamline and who has an established network of contractors who can get the job done within the required time frame. This is not the time to involve contractor friends (that's just my personal opinion).
One more thing. Don't expect to move into the house right after closing because the contractors will first demolish what will be replaced and the house may not be habitable for the first month or so.
You can expect a 45-day closing as the 203(k) streamline and energy efficiency loans do not usually hold up the closing of the escrow. Your loan agent can give you a better time estimate.
Good luck to you.
The process can be similar to any corporate, or bank owned home, and you should allow at least 2-3 months for the response / negotiation time. Then it's just a matter of contract to close, which should take anywhere from 2 to 6 weeks, depending on your financing situation. I'm giving you the worst case senario on the time, it could take 6 weeks from beginning to end. Please feel free to call if you have any other questions.
Closing is 45-60 days minimum. So keep your eye on any extensions/deadlines and make sure the realtor is as well. Otherwise you will be on the court house steps looking to buy it out of a complete circus. The Full K and Streamline K are only different in a couple ways - one allows load bearing work and anything that can be dreamed up (Full K) and requires the HUD Consultant, the other (Streamline) is generally for basic repairs/upgrades under $35k... but certain levels of copper theft and unique damage may flip it in to a Full K at U/W review. Your process? Qualification docs are basically the same... except on a Full K the Consultant builds the Work Write Up and HUD package (scope for the U/W & Appraiser to consider), and assists with bid. Honestly, this loan is saving the country one house at a time - so go forth and renovate.
I have to say that walking the property with a HUD consultant/FHA Compliance Inspector would answer a lot of questions - and give you the documentation that is needed to be very well informed. On full k loans, I have never seen an alarm system get turned down, and if you are really going to get serious about a kitchen remodel - or even think you are- then the full k loan is the place to go, especially if you are a first timer to renovation.