FHA 203 (K) Streamline Financing

HUD has developed a new insured mortgage that permits home buyers to finance an additional $35,000 into their mortgage to improve or upgrade their home.  The loan amount covers the purchase or refinance cost of the property, the remodeling costs and the allowable closing cost, plus a contingency reserve of 10% to 20% of the total remodeling costs to cover any extra work not included in the original proposal.  The 203K Streamline Program is intended for repairs and upgrades that do not require structural modification.  If your property requires major repairs, use the regular 203K program.