FHA max loan amount + down payment = sales price?

[Anonymous]

I'm trying to figure out what sales price I'm working with.

If the max FHA loan amount is $200,000 and my required 3% down is $6,000, does that mean I can look for a house priced $206,000? 

[Anonymous]

I really thought somebody would know.  I just can't figure out if the down payment 3% is on top of the max FHA amount, or part of it?

I'd really appreciate any help.

Thanks in advance. 

[jaydog]

I just started doing my research on home loans and this is from my experience only. You are only going to pay 3% of the purchase price. So if it is 200,000 you are going to pay 6000 down. The loan will be for 194,000. But remember there will be closing costs which have to be paid in addition to the down payment. Plus whatever other fees, lawyers, escrow, inspection etc. 

Just my .02