Modernize a Starter Home with Just 3.5% Down Using an FHA 203k Streamline Loan
- By Jim Blackburn
- on
Client Profile
- Name: Ryan S.
- Age: 29
- Location: Cleveland, OH
- Profession: Civil Engineer
- Home Type: 2-bed starter home
- Purchase Price: $192,000
- Renovation Budget: $28,000
- Loan Type: FHA 203k Streamline
- Down Payment: 3.5% of combined amount
- Credit Score: 652
The Challenge
Ryan found an affordable home near downtown, but it needed light repairs: a new roof, updated flooring, and bathroom upgrades. He didn’t want to take out a personal loan or use credit cards for renovations right after buying.
He was looking for a simple solution to finance small upgrades in one monthly payment—and without complicated contractor inspections.
The Strategy
We helped Ryan use an FHA 203k Streamline Loan, which is perfect for minor non-structural repairs under $35K.
Here’s how we structured the deal:
- Rolled in $28,000 for renovations (roof, flooring, fixtures)
- Used licensed contractors with itemized bids
- Down payment applied to total purchase + renovation
- No structural changes meant a faster draw process and fewer inspections
The Outcome
- Ryan moved in just 5 weeks after closing
- All repairs were completed within 3 weeks of possession
- The home appraised at $238,000 post-renovation
- He gained over $18K in equity instantly
- His total monthly payment was lower than his previous rent
Quote from Ryan:
“I didn’t need a full gut remodel—just a clean, modern upgrade. The streamline version made it simple, affordable, and way less stressful.”
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