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Borrowing above asking price??

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Cheryla18
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 3/21/18 EQ 609 TU 619 EX 628
Discharge 7/2016 Ch 7 BK
Message 1 of 5
4 REPLIES 4
Sunshine85
Frequent Contributor

Re: Borrowing above asking price??

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

Message 2 of 5
Cheryla18
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 3/21/18 EQ 609 TU 619 EX 628
Discharge 7/2016 Ch 7 BK
Message 3 of 5
Elcid89
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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Message 4 of 5
pdog661
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.  

Message 5 of 5
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