The 203b loan program is the standard purchase and refinance program of the Federal Housing Administration (FHA). The 203b program does not include renovation money. The FHA 203k loan program is used to improve/rehabilitate the property. There are two variations of the 203(k) loan program, the standard (original) 203(k) loan which is intended for substantial renovation, and the streamline 203(k) program which is limited to a maximum of $35,000 in repairs and/or rehabilitation. Both 203(k) options include the renovation money with the purchase loan. The renovation money is included in the new mortgage with a refinance loan.
The approval guidelines are similar (i.e. debt to income, employment, etc).
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