What improvements does the Streamlined 203K cover?

Question

From what I've read online, it covers 'minor kitchen and bath remodels' but not 'major remodeling'.  That's pretty broad.  Does anyone have any experience or knowledge with more specific details?

Example: let's say I want to gut a kitchen and put in a new cabinets, new appliances, and new flooring (but with the same layout)?  Is that OK?  And let's say I want to gut the bathroom and put in new tiles, a new tub, a new sink, a new medicine cabinet etc....  Is that OK?

Ward Steunenberg · Answer

Darren, I'm a Renovation Lender that deals regularly with your scenario. Everything you described above is pretty standards. With a 203k, there is no limitation on what type of work you can do beyond "luxury" items (No Pools - though there is an allotment of up to $1500 for pool repairs). You can do extensions, additions, change the floor plan, finance appliances, and of course fix all health and safety issues.

Want to go all out on the kitchen with some custom cabinets and granite counter tops? Perfectly okay.

Let me know what questions you have about how the process typically works. I'd be more than happy to help. Thanks.

Jesse Gonzalez · Answer

The following is acceptable.

? Repair/replacement of roofs, gutters, and downspouts

? Repair/replacement/upgrade of existing HVAC systems

? Repair/replacement/upgrade of plumbing and electrical systems

? Repair/replacement of existing flooring

? Minor remodeling, such as kitchens/baths, which does not involve structural repairs

? Painting, both exterior and interior

? 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 ovens

? Accessibility improvements for persons with disabilities

? Lead-based paint stabilization or abatement of lead-based paint hazards (including the availability to pay for lead-based paint stabilization costs above and beyond that paid for by HUD when it sells real estate owned property (HUD REO). *Contractor must carry certification by the EPA to complete these repairs

? Basement finishing and remodeling, which does not involve structural repairs

? Basement waterproofing

? Window and door replacements and exterior wall re-siding

? Septic system and/or well repair or replacement

? Mold abatement/remediation, which must be completed by a qualified professional

? Repair/replacement/addition of exterior decks, patios, porches

Jesse Gonzalez · Answer