FHA financing UI, 203k eligible

[Larry W Hayes]

I'm just starting to educate myself on real estate investing. So far the extent of that education is "the book on rental property investing". I went and bought Brandon' Turners earlier book "investing in real estate with no (and low) money down"  along with J Scott's "estimating rehab costs" just this morning. So apologies if this is a redundant question. 

Looking on the HUD homes page I ran across a house in the market area I'm planning on investing in. It was FHA UI, but 203k eligible. After looking up the definition of each I came away more confused. From what I read FHA UI was uninsurable because it needed more than 5k worth of repairs and wouldn't qualify for an FHA loan. 203k eligible was a loan you could apply for to add the repair cost in with the cost of the property under 1 loan. I didnt see how you could get the 203k loan if FHA wouldn't insure. It hit me when typing this that they're two different loans and the 203k might be insured while an FHA conventional loan wasn't. Any insight would be appreciated.