FHA standard 203k loan vs streamline 203k loan
FHA 203k loans
A FHA 203(k) loan may be used to finance renovations and repairs for a home you’re buying or refinancing. There are two types of 203(k) loans: the Standard 203(k) loan and the Streamline 203(k) loan (also referred to as the Limited 203(k) loan.
The Standard 203k loan
The Standard 203(k) loan may be used for just about any remodeling and repair costs as long as the existing foundation remains in place. The amount of your loan for renovations must be at least $5,000 and as part of the process of getting approved for the loan, you must use a 203(k) Consultant.
The Streamline 203k loan (aka Limited 203k loan)
As the name suggests, the Streamline or Limited 203(k) loan is streamlined and limited—in how much you can get in financing and what you can use the loan for. The maximum amount you may get financing for repairs and renovations is $35,000. Unlike a Standard 203(k) mortgage, there is no minimum cost. The loan may only be used to pay for non-structural, minor property repairs or improvements, such as remodeling the kitchen, painting the interior, purchasing new carpet, etc.
Also, unlike the Standard 203(k) mortgage, the Streamline 203(k) doesn’t require you use a 203(k) Consultant, which’ll save you some costs, but a Consultant may be used. Additionally, you must live in the property, and it cannot be vacant for more than 15 days.
Here’s a breakdown of the difference:
| Detail | Standard 203(k) Loan | Streamline 203(k) Loan |
| Minimum renovation costs | $5,000 | None |
| Maximum renovation costs | As much as needed and detailed in work plan | $35,000 |
| What you can use the loan for | All repairs and renovations as long as foundation stays in place | Minor, non-structural repairs and renovations |
| 203(k) Consultant | Required | Not required |
| Must live in property during repairs | No | Yes (cannot be vacant for more than 15 days) |