CRAM ARCADE Open App

Which of the following renovation projects would be eligible under the FHA Standard 203(k) loan but NOT under the FHA Limited (Streamline) 203(k)?

General Mortgage Knowledge · 20% of the SAFE exammedium

Show the answer and explanation

Correct answer: Structural repairs including foundation work and room additions

The FHA Standard 203(k) program allows for major structural rehabilitation, including foundation repair, room additions, and significant renovation work. The FHA Limited (Streamline) 203(k) is capped at $35,000 in repair costs and does not allow structural work — it is designed for cosmetic or minor repairs. Replacing appliances, painting, carpet, flooring, and roof repair/replacement can generally be done under either program (or just the Limited version), making options A, B, and D ineligible as answers since they don't distinguish Standard-only work.

Drill 2,078 more questions like this, free

CRAM ARCADE has the full NMLS question bank, timed practice exams, focus drills on your weakest category, flashcards and spaced repetition. No credit card.

Start studying free