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Frequent Contributor
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Registered: ‎10-13-2009
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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.

myFico EQ 612 (8/14) 596 (2/14) 574 (12/13) 497(1-7-13
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Frequent Contributor
Posts: 367
Registered: ‎01-14-2012
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Re: Borrowing above asking price??

[ Edited ]

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

Frequent Contributor
Posts: 454
Registered: ‎10-13-2009
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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.

myFico EQ 612 (8/14) 596 (2/14) 574 (12/13) 497(1-7-13
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MyFico TU 618 (2-10-14) 589 (11-17-13)
Current Goal 640
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Contributor
Posts: 567
Registered: ‎10-04-2012
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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
Posts: 378
Registered: ‎03-31-2012
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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.  

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