Is this possible????

DH and I saw a house that we could possibly get at a great deal...it's an estate sale that the family just wants to get rid of. The kitchen and bathrooms would have to be updated right away. If we buy the house for lets say $400,000...can we take a mortgage for $430,000....so we would have money to do the work right away. The house would appraise for much more then the total mortgage....also we are most likely doing an FHA loan. If this is possible...what happens at closing...do you just get a check back from the bank?

Thanks!!!

Re: Is this possible????

we are buying an estate sale with an fha loan. Yes as long as your credit and income allows you can take extra money for improvements. The problem with FHA loans though is certain things need to be fixed before you close depending on the bank and/or appraiser. We now have to do exterior work in order to pass for the loan. So get pre-approved to see what they will allow you.

We are getting our house 80K less then appraised which is great but its been hell getting there.

Re: Is this possible????

FHA loans are a little tricky sometimes, do you have a mortgage broker??

i highly recommend one and if you want our guys info just let me know....

but a good broker can tell you how much you can really afford and realistically how much the FHA loan you should get so you dont have to worry about the approval.....


good luck!!!!!