In the case of a HUD 203(k), you need to have the property examined, labor and repair costs estimated, and have the repair list broken down so that your lender and the FHA can see how you plan to proceed once the sale is final. WHAT DOES MY FHA "FIXER UPPER" LOAN PAY FOR?
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It is possible to finance the repairs on a home using a conventional loan and a bridge loan or interim financing; however, this is a complex situation that may end up costing more in fees than the 203k loan package. The interim packages will likely need to be directed individually,
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HUD.gov / U.S. Department of Housing and Urban Development (HUD) – Financing Improvements. As a rule, the thriftiest way to finance improvements is to pay cash. But if you lack the funds even for immediate repairs such as replacing a worn-out roof or a broken-down furnace, you should weigh the cost of borrowing against the cost of delaying the work.
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