I have some slightly older 203(k) experience.
Your loan amount cannot exceed 110% of the appraisal value. I had to re-negotiate the purchase price when my appraisal came in low 2 years ago. The market has improved, so here's hoping you get the appraisal you need.
Since the HUD inspector found some minor issue that were deemed structural, I had to go full 203(k) despite the rehab amount qualifying for a streamline.
Your 3.5% down payment amount is based on the full loan, not on the purchase price. I'm 2 years into my loan and I'm working on refinancing into a conventional loan because otherwise, I'm paying PMI ($115/mo) for 17 years of my 30 year loan, since the LTV is based on the LOWER of your purchase price and your appraisal amount. I believe the current FHA rules have you paying PMI for the life of the loan.
Depending on how property taxes work in your state, prepare to be shocked by how much they change just a year down the road. I paid the old owner's rate for a year and then got a 29% increase.
I also had some contractor nightmares. Ask a ton of questions - make sure that you're on the same page about finishes and price shopping for materials and all of that stuff. My HUD guy apparently had some unusual way of doing it, and I was stuck with him - he wrote up what he thought it would cost, section by section, parts / labor, and then if I opted for a cheaper option, my contractor would get paid for the materials amount and if I opted for a more expensive option, he'd try to get the difference. I raised holy hell and got what I wanted at an appropriate price, at least for materials. If I had to do it over again, I would have talked to more contractors and detailed every thing I wanted and make sure they understand that I get approval on every single material. I would also get a timeline in writing from them.
My understanding from my lender is that it is standard for the contractors to give you bids and for you to choose them based on whatever you choose them on, and definitely not the way I ended up stuck with it. Know what you want, and have an understanding of costs of your materials. One of my favorite interactions was when I told my contractor that the sink I wanted was $1200 in the store he had an account at, and it was $800 online, delivered. I told him he needed to get it for that price or to order it online and I gave him the link. He got his supplier to meet the price on the sink and beat the price on the sink grate to go with it.
Oh, and expect home insurance to possibly be more than you expect. Mine is based on the cost to rebuild my house as it is, and is twice what online estimators want to guess. Rebuilding cost on my house is more than twice my appraisal value.
Also, start finding out where to buy older items. Habitat for Humanity has these Re-Stores where you can find all kinds of pieces for pretty cheap. I bought all of my kitchen cabinets at one for about $800 instead of the $5000 I was going to spend to buy new ones. (They were necessary - previous owner ripped out the kitchen. I don't mean the appliances. I mean everything but the floor.)
My house is circa 1860-1880, I believe. How old is yours?
Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
I chose him from a few - he seemed like the best choice. I didn't probe him enough, I didn't know what I was doing. I should have known more about the mechanics of the program and asked my lender for recommendations as well. Not all contractors want to do the 203(k), so you'll have a limited selection. I would recommend asking things like how they deal with the mechanics of payment, what the timeline is, what other jobs he has at the time, etc. My other problem is that I trusted the HUD guy with too much and I should have tried to replace him before closing, but I didn't know any better. As a chick, for me, there should always be red flags when someone treats you in a paternalistic manner when they're in that kind of role. It seems OK, but then you figure out that they're just patting you on the head and saying "there there". A HUD guy for payouts and such was required for the full loan, so every time money was coming out of escrow, the HUD guy had to come out.
I want to thank you again mauve for your insight. As you can see there are tons of views on my post, but you are the only one commenting. Seems like the 203k is not a very popular choice right now!
I am shooting for the Streamline, as none of my repairs are structural. I had initially wanted to get the fence replaced, but that would push it to a full 203k, and I am trying to avoid that at all costs. I need some electrical work and cosmetics. While the house was vacant, someone also liberated the house of all of the copper pipes. The lines themselves have been replaced with updated pipes, but a few things are missing, such as the condensation pipe from the air conditioner and the grounding from the electrical panel. There are beautiful oak floors hidden under carpet in 4 rooms, and exposed hardwood that needs refinished in the rest of the rooms. You can still see the holes from the tack strips where they previously had carpet installed. Such a shame. The roof needs a bit of work, and the garage door and opener are on their last legs. I also need some work in the three season room, and the deck needs refreshed. There are a few other things, but this list sounds long as it is! I am hoping to get them all done for under $25k, max. Fully updated homes in the area are appraising at about $150k. My realtor estimates mine at about $160k when fully updated, due to the size of the home and the lot. So even $25k should keep my payment very manageable and well under the after reno value of the home.
I have two contractors scheduled, and I am going to schedule one more tomorrow. Two of them are 203k certified, and are very familiar with how to complete the estimate, as well as the draw process. The third is a well respected company in my area, and was recommended by my broker. However, I will not know how they feel about the 203k until I meet with him tomorrow. I am completely OCD about reading up on anything I am doing. So I have studied the 203k Streamline process intensively over the last few weeks, as well as how to identify a proper contractor. Hopefully my obsession leads me in the right direction!
I am just ready to get the estimates already so I can get this train moving. I want to close already, sheesh! 
Wish me luck!
As much of a pain as it was, and as much of a problem I had with my HUD guy and my contractor, and as much as I still need to do to this house, I am glad I got it.
I personally like older homes. My first home was a duplex built in 1979 and my second home is a split level built in 1978. They both have that very earthy, organic feel, with very solid construction. I've done some minor cosmetic updates in the duplex, but the second home was "move in" ready.
I think a 203k loan is a great option because it allows you to personalize your house into what will work best for your family. You can also get the house cheaper in some cases.
Best of luck to you with the upcoming closing!
FICO 9: 
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!