Valued Contributor
mauve
Posts: 2,487
Registered: ‎02-18-2010
Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

I responded to your other post about the 203k, but here's the thing, at least here:  I got an FHA appraisal, which any FHA buyer will see for the next 4 months.  It will come up with the as-improved price (assuming the improvements are things that will make the property equivalent / saleable).  The lending limit will be the *LOWER* of the sales price plus the improvements (which will include fees / permits / a % contingency - up to 20%, probably at least 10% / etc) OR 110% of the as-improved value.  So if you get a contract price of 90k and the appraisal comes in at 120k, you will be restricted by the LOWER amount:  120k +10% = 132k or 90k +55k+10% = 150.5k  - so you'd have to come up with almost 18k IN ADDITION to your 3.5% down and closing costs. 

 



Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


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