Yet another FHA question

Ok... so DH and I were approved for an FHA loan.....but now we might be doing a FHA-203K loan instead??? Anyone else do that?
It's a loan where the bank lets you take out additional money to make improvements on the house. We want to put in a new kitchen and bathroom. So my question is... if we put 3.5% down...is that on the sale price of the house. Or do we need 3.5% of the total loan amount including the renovations? I left a message with the guy that specializes in these loans...but he didn't call me back today.

Thanks!

Re: Yet another FHA question

i looked into this as well.

i believe that you take it out for the ENTIRE loan. the extra money goes into an escrow fund where you pull from.

If you google it, there is a site out there, that i don't remember where, that breaks it all down for you.

HTH