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What’s the Difference Between a Full 203K and Streamline Mortgage in Alameda, CA?

Alameda, CA is a town with many beautiful Victorian and Craftsman style homes. Often an older home will come onto the market that has great potential but could use a little TLC. How can a homebuyer purchase one of these Alameda homes and afford the repairs? A 203K rehabilitation mortgage is just the thing!

Many clients and Realtors we know have questions about this type of loan, for example what is the difference between a 203K Streamline and Full 203k? Well in a nutshell, here are a few key points:

Key points of 203K Mortgages:

Not just for repairs
Dated homes
Remodel kitchen or bathrooms
Razed homes
Foundation repairs
Pool repairs up to $1500
Mold or Lead based paint
Termite damage (cannot include the inspection)

Streamline K

Maximum repair amount of $35,000
Streamline is for small projects that involve 1 or 2 specialized contractors
Any HUD, bank owned or vacant home is not eligible regardless of dollar amount
Would not have a HUD consultant

Full K

No maximum repair amount
HUD approved consultant is brought in to do the inspection
Consultant prepares write up for project after meeting with borrower and discussing borrower’s wish list and the items that need to be done to bring the home to HUD’s minimum property standards
Borrower uses write up from consultant to find general contractor’s to bid the project.
Accept bid from general contractor

This loan will take a little longer to close, depending on the scope of the work to be done. But what a reward to purchase a beautiful older Alameda home, get the repairs done and move into the home of your dreams!!

For more information on 203K Rehabilitation loans (Streamline K or Full K) contact the Werdmuller group! We are in contact with a local 203K consultant and contractor with experience doing these types of transactions, successfully!