Simplifying FHA 203 (k) .. funding for rehabilitation?

if the house is part of the financing of rehabilitation is the lender will allow the buyer to hire their own contractor to improve or fix the house before moving.

Yes, you can use your own contractors. Although you're the first person I heard with the FHA 203K and streamline the same sentence. It takes more time, then the extra step in an FHA FHA 203K. You need to get bids for the work and provide the lender that includes in the package. Then, the FHA appraiser property appraiser to do and check whether tenders are in the correct range. If your bid price + labor costs to do is less than or equal to the valuation price, be approved. (Both she and meets all other normal conditions). Then, with the additional funds, you can hire subcontractors). Whatever you make sure your lender has a 203K FHA loan before. I had a few coworkers lenders use that have been tested, but not lenders of FHA 203K FHA lenders. And every transaction collapsed. The Experience is the key. Good luck!