Loans By Kathy: FHA Renovation Loans - Consultant vs. Streamline

FHA Renovation Loans - Consultant vs. Streamline

FHA Renovation loans are available in two different formats, streamline and consultant.  The consultant loan allows for more extensive repairs.  The streamline program caps the repairs at $35,000.  Renovation Lending


The advantage of the FHA renovation loan, is that the underwriting criteria including credit, down payment, income and reserves are the same for the standard FHA 203(b) loan.  Please remember that in order to use the FHA program, the borrower must intend to occupy the home as their primary residence.





Here is the list of eligible and ineligible repairs for the Consultant Loans:

Eligible Repairs

Not Eligible

Structural alterations and additions

New tennis court

Garage (attached / detached/ new)

Gazebo or bathhouse

Remodel kitchen or bathroom

Additions or alterations to provide for commercial use

Install appliances

Photo mural

Changes to eliminate deterioration and reduce maintenance

Television antenna or satellite dish

Repair swimming pool (up to $1,500)

New swimming pool

Modernize plumbing/heating/air conditioning/ electrical systems

Outdoor fireplace/ hearth/barbeque pit

Install or repair well/septic system


Install or repair roofing/ gutters/ downspout


Install flooring/ tile/ carpet


Energy conservation improvements


Major Landscaping/ decks/ fencing


Improvements for accessibility (e.g., handicapped ramp)


Interior and exterior painting


Improvements that are a permanent part of the real estate









For the more popular FHA 203K Streamline Renovation Loan the repair list is as follows:







Not Eligible

Repair/replacement roof, gutters and downspouts

Major rehabilitation or major remodeling, such as relocation or a load-bearing wall

Repair/replacement/upgrade of existing HVAC systems

New construction, including room addition

Repair/replacement/upgrade of plumbing and electrical systems

Repairs of structural damage

Repair/replacement of existing floors

Repairs requiring detailed drawings or architectural exhibits

Minor remodeling, such as in the kitchen, which does not involve structural repairs

Any rehabilitation activities that require more than two payments per specialized contractor

Exterior and interior painting- including Lead-Based Paint Stabilization

Landscaping or similar site amenity improvements

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

Work that would cause the borrower to be displaced from the property for more than 30 day during the time of rehabilitation

Repair/replacement/upgrade of appliances (may include free-standing ranges, refrigerators, washer/dryers, dishwashers and microwaves)

Work items that would necessitate a consultant to develop a Work Write-Up

Improvements for accessibility for persons with disabilities

Any repair or improvement requiring a work schedule longer than six months

Basement finishing/remodeling/waterproofing (not requiring structural repairs)

Luxury items: Tennis court; Gazebo or bathhouse; Photo mural; Television antenna or satellite dish; Outdoor fireplace/hearth/barbecue pit

Repair/Replace/Add decks, patios & porches

Additions or alterations to provide for commercial use

Window & Door replacement& Exterior wall re-siding

New swimming pool

Septic and/or Well repair or replacement





Using an FHA renovation loan can turn a house into a dream home.  





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Kathy Sheehan Senior Loan Officer






Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.


Comment balloon 6 commentsKathy Sheehan • May 13 2013 05:06PM


Kathy: This is an excellent resource for anyone considering or trying to figure out what an FHA Renovation Loan covers.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) almost 5 years ago

Thanks Anita.  I often find some agents don't know there is more than one program and what can be covered by each.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 5 years ago
Bookmarked! Definitely good information for those fixer upper homes. Thank you.
Posted by Joy Daniels (Joy Daniels Real Estate Group, Ltd.) almost 5 years ago

Joy, happy you find it helpful!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 5 years ago

Hi Kathy - like Joy, I have bookmarked -- although FHA renovations loans are not a part of our current market dynamics, things can and do change so it's good to stay on top of all financing options.

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) almost 5 years ago

Kathy, this is so incredibly informative. With so many people getting FHA loans, its' good to know the guidelines.

Posted by Connie Harvey, Realtor - Nashville TN Real Estate (Pilkerton Realtors) almost 5 years ago