Ineligible Improvements and Repairs with the FHA 203K Program
The 203K program is not eligible for items that are considered Luxury Items or what is deemed excessive or recreational improvements such as swimming pools, tennis courts or non-permanent features. HUD allows for foundation and structural work with the Full FHA 203K program but the majority of FHA lenders seem to have their own restricitions preventing this, so make sure to ask your lender.
In general though, the Full FHA 203K program will allows for more costly and major renovations while...
The FHA 203K Steamline program is more restricitve and limited on allowable improvements and cost.
Under the 203K Streamilne the following work items are ineligible...
total repairs or renovations in excess of $35,000
work that will take longer than 180 days
anything considered as major remodeling or rehabilitation (for example : moving a load bearing wall)
new construction and room additions
repairs requiring detailed drawings or architectural exhibits;
repairing any structural damage