FHA 203(k), limited and standard
Limited 203(k) is for smaller, non-structural work with a capped repair budget. Standard 203(k) supports broader rehab, typically with an HUD consultant, a more detailed work write-up, and longer processing. Both finance eligible repairs into the mortgage so you are not stacking a personal loan on top of a purchase. Contingency reserves are required. Draws are inspected. That is slower than a vanilla FHA purchase on purpose.
FHA appraisals still care about health and safety. A 203(k) exists partly so those items can be cured after closing instead of killing the contract. It is not a way to skip FHA property rules. Luxury remodels, additions that change footprint, and contractor capacity all hit overlays.
Conventional renovation
Conventional renovation (often discussed as HomeStyle-type or lender-specific rehab programs) can finance purchase plus repairs with conventional mortgage insurance rules instead of FHA MIP. Credit, reserves, and maximum renovation budgets differ. Some desks want a larger down payment. Some will not touch manufactured homes or certain condos. We shop what is actually available that week—not a brochure from 2019.
Contractors generally need to be licensed and insured. Self-help (you doing the work) is limited or prohibited. Timeline slippage is the main risk: the holdback does not automatically expand if lumber and labor run over. Education first means we will tell you when a cash-out refinance after a conventional purchase is cleaner than forcing a 203(k) on a two-week close.