I'm going in the direction of the 203k and it is my understanding that if you qualify for FHA loan you are approved for the 203k. The property must meet certain FHA guidelines and can't be a disaster of a house. You will be able to do cosmetic type work, but can't be knocking out walls, re routing plumbing ext. My lender said the 203k portion is available for up to $30,000 for rehab. So if you are pre approved for say $200,000 you will need to be looking for a property around the $170,000 range. Give some local banks a call and shoot em some questions.