You have two options. One, you can check with your loan officer and ask the about doing a conventional rehab loan. They are wonderful and work great.
And number two, I am going to do something I never do on this forum and that is side with someone. Gregorio from CA is right. Chris Block stated that "FHA 203k's are pretty much a waste of time for many reasons, but mainly because they take forever to close." I 100% agree with Gregorio. In fact, and forgive me, Mr. Block, but I must speak the truth here. That is 100% false information as well as terrible advice. Over half of my buyers last summer used 203k streamlined FHA renovation loans. And you know what, Vonduper and Chris, I can tell you for a literal and verifiable FACT....that these take less time to complete and close than the standard 203b FHA loans. That is a FACT! My 203k loan officer can get these closed inside of 3-4 weeks and he has done it many times. My buyers with regular FHA loans never get anything closed under 4 weeks. So you need to know this right up front.
But the most important thing I can stress here is that if you are approved for the conventional loan, you will surely get approved for FHA. And just because you are going FHA does not mean you still can't put 20 or 30% down. Hey, most of the buyers out there that can be approved for conventional financing often go FHA just because it can be a better deal. But the bottom line is that there is a renovation loan for FHA and also conventional. And my 203k guy does both, all day long. If your loan officer cannot do that for you, then please go to my website link below and give me a call. I will be glad to give you his contact information.
I hope you check out all of your options here, because as opposed to what Chris said, these loans are NOT a waste of time and they don't take forever to close. You can and most likely will wind up with a better deal on the property and you should be able to hopefully buy it right AND have some instant equity in the home when you get done with the renovation.