An FHA 203k is used more for foreclosure type properties that need major repairs such as foundation work. These properties may be uninsurable without the work being done. This type of loan is complicated and not used very often. There is an FHA 203k S (Simple) that is designed more for cosmetic improvements such as wood floors and paint. My preferred lender also has a Purchase Plus Improvement product that allows you to add improvements up to 25% of the value of the property and you can finance up to 95% of the value of the property as it appraises with the improvements. At this time, this product is limited to a 5 year ARM and you must use a contractor for the improvements. Contact Carroll Dyer, Executive Vice Pres./Loan Officer with ViewPoint Bankers Mortgage for more information. Phone: (972) 304-4604 Email: firstname.lastname@example.org.