Barron added that the project reviewer does provide protection for the customer in terms of costs and quality of work standards.

Streamlined 203 (k) Loans

Barron said that one of the major differences between a standard and streamlined loan is the maximum amount that can be borrowed is $35,000. “This includes permits, inspection fees, and a ten percent contingency reserve,” said Barron. “So, what you really have is $30,000 to $31,000 for renovation.” Barron said that in the streamlined loan, only specific types of rehab can be done to a property. “You can’t do substantial structural repair,” he said. The plan reviewer in a streamlined loan will allow the customer to seek out estimates themselves and make their own choices regarding which contractor to use.

There are still a wide range of projects that can be done with the streamlined loan, including most energy efficiency improvements.

There are some state-to-state differences that apply to the loans, but most are not usually significant according to Barron.

For more information on HUD guidelines relating to 203 (k) Loans, go to: