Richard's Real Estate Thoughts - Chattanooga TN Mortgage Lender: FHA 203k renovation loans: Full or Streamline

FHA 203k renovation loans: Full or Streamline

For purchase or refinance renovations FHA offers two options:   full 203k and a streamline 203k renovation loans. The most significant difference between the two is that the full 203k renovation loan uses an approved renovation consultant to assist with the proposal and to monitor the actual renovation work.

While the consultant does bring an added cost, the additional FHA consultant fee is affordable compared to the benefit from the review of the renovation proposal and from the inspection of the work. A consultant can be helpful for certain work even with the streamline renovation 203k.

The consultant is required for renovations that are structural in nature or have a total cost over $35,000, including renovation required reserve.

Types of renovations that are typically accepted for the streamline renovation include:

  • Roofs and gutters

  • Some plumbing and electrical upgrades

  • Flooring

  • Some kitchen upgrades

  • Paint

  • Siding

  • Finishing basements

Other work might be considered nonstructural and might fit into the streamline program. Room additions, repair of structural damage, and moving load bearing walls are examples of renovations that will require a consultant.

These renovation loans are excellent options for many home buyers who are looking at a foreclosure home or a great home that simply needs upgrades. The down payment is low. The renovation cost is added to the loan, at the low mortgage interest rate.

Contact me with any questions about your home purchase. And if you want a renovation loan, experience will definitely make a difference.

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Richard Smith
NMLS# 184479 TN# 104002 Georgia Residential Mortgage Licensee, GA#28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,

Rural Development (USDA), THDA and Jumbo Loans

Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Fairway Independent Morgage Company

Cell phone: 423-280-0345 Email:

Visit my website to inquiry about a home loan.

This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Fairway Independent Mortgage Corporation.

Comment balloon 0 commentsRichard Smith • September 26 2016 08:59AM