The Streamline 203K Program is designed to simplify the process in the purchase of homes that need minor rehabilitation work, including needed repairs noted in a prepurchase inspection and FHA appraisal.

Loan Parameters

Available for purchase and no cash out refinance transactions Rehabilitation costs: Maximum $35,000 (no minimum)

Eligible Work Items

*  Repair/Replacement roofs, gutters and downspouts

*  Repair/Replacement/upgrade of existing HVAC systems 

*  Repair/Replacement/upgrade of plumbing and electrical systems

*  Repair/replacement of flooring

*  Exterior and interior painting

*  Minor remodeling, such as kitchens, which do not involve structural repairs.

*  Weatherization: including storm windows and doors, insulation, weather stripping, etc.

*  Purchase and installation of appliances –including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave

*  Improvements for accessibility for persons with disabilities

*  Lead based paint stabilization or abatement (HUD REOs)

*  Repair/replace/add exterior decks, patios, porches

*  Basement finishing and remodeling, which does not involve structural repairs.

*  Window/door replacements and exterior wall re-siding

*  Septic systems and/or well repair or replacement

Rehabilitation Criteria 

*  Repairs must comply with local code. All permits must be obtained prior to start of work.

*  If change orders result in net cost increase, then mortgagor must pay for additional costs

*  Mortgagor must use one or more contractors. Self help arrangements are not allowed except when borrower demonstrates the expertise necessary to complete the work

 Misc.

Items noted in a prepurchase home inspection can be included. The FHA appraiser must be provided with a full copy of the inspection.

Contractor Approval:                                                                    

All contractors selected by the borrower must:

Agree in writing to complete the work for the amount of cost estimate and sign a homeowner/contractor agreement.                   

Maintain full liability (at least $300,000 coverage) and workman’s compensation insurance (if they employ others).                          

Be fully licensed for each specialized repair or improvement.Agree in writing to complete the work for the amount of cost estimate and sign a homeowner/contractor agreement.            

Costs & Reserves

*  Allowable “Soft Costs”•Permit costs.•Inspection fees (minimum of 2).

*  Contingency Reserves10% contingency reserve may be required on some repair items such as roof tear-offs and total replacement of plumbing and electrical systems.

*  Supplemental Origination Fee: AmeriCU will collect a supplemental origination fee equal to $350.This may be financed into the loan amount

Calculating Max Mortgage

Purchases:

Lesser of :Purchase price or"as is" value+ Total rehab costs (hard and soft costs)or110% of after improved value Multiplied by LTV Factor (96.50%)

Refinances:

Lesser of:

1)  Sum of existing liens + total rehab costs (hard and soft) + closing costs + discount points or

2)  Lesser of sum of as is value + rehab costs OR110% of after-improved value + borrower paid closing costs multiplied by LTV Factor (97.75%)

Home Inspections:

*  Once loan is closed –repair items cannot be changed unless a D. E. underwriter approves change order.

The Streamline 203K Program is designed to simplify the process in the purchase of homes that need minor rehabilitation work, including needed repairs noted in a prepurchase inspection and FHA appraisal.

Loan Parameters

Available for purchase and no cash out refinance transactions Rehabilitation costs: Maximum $35,000 (no minimum)