It is my opinion based on fact that every FHA 203k loan should be a Standard or Full 203k. In 2005 the Streamlined k came on board as there were those in the industry that felt many small renovation projects didn't really need a "consultant".
Now after about 9 years the Streamlined k accounts for 98% of the problem 203k loans in the industry.
I met a client today who was told by everyone that they should use a particular contractor on their Streamlined k loan. Her contractor bid under $2,700 and the one that they were told to use came up with a whole lot more work... NOT, but charged nearly $10,000. Remember that 50% of the construction cost is paid to the contractor up front.
In this case if the work was really only worth $2,700 and they got 50% of $10,000 they have already been paid twice what the going price was. Is it a wonder the contractor then did shoddy work and left the client hanging? Wow, the consultant earns their money, use one.
If you are going to recommend a contractor, don't recommend your spouse. Keep it at arm's length.