Buying first home worth more than price - no money down

[Anonymous]

My wife and I are looking at buying the home we are renting in about a year after we get our scores back up from high util. The house is probably going to appraise about $130k and the price will be about 70k (we've been basically making the payments, etc as our "rent"). We want to borrow $100k so that we can get a heat pump to replace the oil furnace, and remodel the kitchen, etc. if possible.

Having never bought a house, is this possible? Do we have to have cash down to make this happen or will the fact that we only want to borrow 75% of the value give the banks incentive to give it to us?

[WannaHouse]

The only way to do that I believe, is to get a rehab loan. FHA has a 203K loan, but not sure how easy they are to get nowadays. Other than that, I don;t think any program will let you borrow more than the sale price of the house.

[ShanetheMortgageMan]

FHA 203k rehab loan is what you want.  Here's some starter info:

http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm