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Borrowing above asking price??

Established Contributor

Borrowing above asking price??

If i plan to buy a home with an asking price of 114K and let's say it appraises at 125K  can I borrow more than the asking price as long as I stay under the appraisal price?

The reason I want to do this ...is that it is only a 3 bedroom and so i will need to have the 4th bd built in the basement. And I won't have any cash flow to do that with. I've asked a friend of mine and he said about  $3,000.00 but I was also thinking of buying new appliances.

Current as of 7/10/17 EQ 598 TU 611 EX 629
Discharge 7/2016 Ch 7 BK
4 REPLIES
Frequent Contributor

Re: Borrowing above asking price??

No, unless you're using an FHA 203k loan. 

Established Contributor

Re: Borrowing above asking price??


Sunshine85 wrote:

No, unless you're using an FHA 203k loan. 


I will be using an FHA loan but i have no clue what the 203k represents. Any info is appreciated.

Current as of 7/10/17 EQ 598 TU 611 EX 629
Discharge 7/2016 Ch 7 BK
Contributor

Re: Borrowing above asking price??


Cheryla18 wrote:

Sunshine85 wrote:

No, unless you're using an FHA 203k loan. 


I will be using an FHA loan but i have no clue what the 203k represents. Any info is appreciated.


A 203k is a rehab loan. FHA allows you in limited circumstances to borrow over and above for the purpose of rehabbing.

 

More information here:

 

203k

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Frequent Contributor

Re: Borrowing above asking price??

Hi,

 

You can not take money out at close when buying a home. 

 

You would need to be doing a renovation loan in order to get funds out to improve the property. 

 

There are not many of these loans currently available.