Standard Renovation allows for Structural repairs and adding square footage. That means you can add a bedroom, move walls, build a garage or completely tear the house down to the foundation and rebuild if necessary. It requires a HUD consultant to prepare a Specification of Repair. Any home repairs that require drawings or blueprints or require more than two draws must be a Standard Renovation project.
Limited Renovation is for small renovation projects. The program does not allow structural renovations. The loan is set up to replace and upgrade the home and is limited to nonstructural updates. The repairs cannot prevent the homeowner from occupying the property for more than 15 days during the rehabilitation period. Maximum repairs cannot exceed $35,000 including 10-15% contingency and fees.
Some lenders now offer a Limited Conventional HomeStyle as well as Limited FHA 203k loan programs. Make sure to discuss your loan options with your Loan Officer and Renovation Specialist.
Here is the Rule:
EPA's Lead Renovation, Repair and Painting Rule (RRP Rule) requires that Contractors performing renovation, repair, and painting projects that disturb lead-based paint in homes built before 1978 have their firm certified by EPA (or an EPA authorized state), use certified renovators who are trained by EPA-approved training providers and follow lead-safe work practices.
If the home the borrower is buying or refinancing was built prior to 1978 then your contractor in most cases needs to have his lead paint certificate. Here are a few exceptions.
When does my contractor NOT need a Lead Paint Certificate?