A Streamlined 203(k) provides extra money on top of the mortgage to pay for improvements such as a new roof, appliances, furnace, energy-efficient windows and cosmetic improvements like carpet, paint, and remodeled kitchens and baths.

The maximum rehab loan is $35,000, but the Streamlined 203(k) allows the money to be rolled into the entire mortgage, so the repairs can be paid off over time along with the house.

Under the program, a seller is paid at closing, and the remaining money from the Streamlined 203(k) goes into an escrow account. As repairs are completed, money is removed from the 203(k) escrow account to pay for them.

There are other rules. A licensed contractor, for example, must complete the work within six months, though some lenders allow the borrower to do minor cosmetic work, such as painting.

For more info on the Streamlined 203(k) program visit the Department of Housing and Urban Development website at: http://www.hud.gov/offices/hsg/sfh/203k/203kslrp.cfm