The last answer is incorrect. The FHA 203k program can be used to make improvements on a home you currently own. You can visit the webpage below. If you have any direct questions feel free to contact me @ 203-627-0495. Thanks Joe Walters Realtor & mortgae consultant
I believe that you can use an FHA 203k loan to refinance and do repairs on a home. I just took an FHA class yesterday and that is what they presented. Contact your local FHA 203k lender to find out more.