Yup. You'll likely have to front 1.5x the estimated cost of the project (in which you'll have to have a contractor quote you for). The quote comes back at $1,000, you'll have to escrow in $1,500 to cover anything that comes up.
Welcome to FHA. They can do this for windows, roofs, paint, cat hair (kidding), etc.
I once had to put up $7700 for windows on a house. Did that shit myself for $2200.