203K rehab loan?!?!?

[Patrick C.]

I recently found a property in a prime location and it needs “minor rehab”: Minimal drywall work, painting, carpeting, and exterior fence around the property in order for it to rent out. My lender has mentioned about a 203k rehab loan. He told me that I would need to find my own Licensed contractors and pay more of a down payment because it’s considered a “special property”. From what I researched and know about the loan Is the complete opposite of what he mentioned (they provided a list of Licensed contractors and it would be the same FHA down payment at 3.5%). Did I read a wrong source or what?!