|Processing the FHA 203k Streamline Loan: After the loan closes, a package is sent to the borrower. Because there is no HUD Consultant, the total repairs account should equal the contract amount on all the Homeowner/Contractor Agreement(s).
The Streamline(K) allows 50% of each contractors cost to be released for the purchase of materials to complete the renovations, which is considered the first draw.
Forms required for a Streamline Loan:
- Authorization Form(s) signed by the Borrower
- Building permit. The first draw can be given without the permits, but if not provided by first draw, the finals funds will not be available without the permits being provided.
- Lenders Instruction for Disbursement (DE Lenders).
Numerous times with the StreamlineK there are more than one contractor. If one contractor is finshed before the others it is the decision of the lender to either have a inspection completed or a Final Lien Waiver is executed by the Contractor. (A notarized signature is required). Along with the Final Lien Waiver, needed is a final invoice signed by the borrowers and contractor stating all the repairs are 100% complete.
- 1 -4 family completed for at least 1 year.
- Conversion of multi-unit dwelling decreasing the number of units.
- Conversion of single family dwelling increasing the number of units.
- A complete rehab as long as the entire foundation system remains in place.
- Condos have no structural work.
Final Release of Funds
- Homes completed for less than 1 year.
- Homes that have never been completed.
- Cooperative units.
- Non-owner occupied.
- Non-profit companies.
Prior to the final on the StreamlineK the Appraiser or a HUD Consultant need to do a final inspection to check to see that all the renovations are 100% complete.
Click below to see FHA Streamline training.