I would have a In- Depth Comparative Market Analysis done before any renovation just to verify that the investment in the home will justify the cost. If the home is in a neighborhood where the Comparable properties are selling for less than market value you will never regain the cost. If they are selling for more then I would go ahead but make sure that they doing the work to ensure you gain value in your home.... more
As my collegues have explained, the process does take slightly longer and there are repair requirements for anything structural or safety related. I did want to clarify that there are closing costs that the buyer is NOT allowed to pay with FHA and those fees are usually under $1K. The buyer's lender should be able to provide you with an estimate.