Alternatively you may be able to do a FHA 203K mortgage and normally most lenders will require you to work with HomeDepot or Lowes as the general contractor. It's odd but Lowes and HomeDepot do NOT do the HomePath Renovation... seems foolish to me.
With the HomePath Renovation you must occupy as your primary residence just like the FHA 203K. The 203K Streamline is for up to $35k of upgrades,repairs and you can't have any structural repairs. You will need at least 45 days to close a 203K or HomePath Reno, too.
Contractors may not want to do the HomePath Reno because there may be delays in getting paid.
Good luck and I hope this helps.
All the best,
Alma Kee http://www.SoldOnTampa.com
PS My client ended up with a model perfect home after the reno and has "instant" equity, too. Worth the effort!