Types of FHA renovation loans include a Standard 203k and a Limited 203k. The Standard is for larger projects like rebuilding a home from the ground up.
These projects exceed $35,000. For smaller repairs, upgrades and improvement, the Limited will provide up to $35,000.
Work must be completed by HUD-approved contractors. This loan requirement is a little less attractive to DIY-ers.
Money set aside for renovation work is held in a renovation escrow account and is released when repairs are completed.