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.