Hello J. Robb:

Hope you are having a good weekend so far!

I would like to add to what James said...you would want to have the whole house inspections and also have the general or a specific trade contractor come out to the home to see how much the repairs are that you are wanting to have completed. You would submit the bids with the contractor you plan on using for the repairs with your fully executed contract. With the FHA 203K rehab loan, you can have up to 80% of the improved value for your rehab money. So if you buy a $50,000 home and the improved value is $100,000...then you can get 80% of the $50,000...which is $40,000 for your repairs. You can included Appliances too! The interest rate is a little higher than the regular FHA loan. The goal is to complete the work quickly, so you can refinance to a regular FHA from the 203K. You get 2 draws on the money and is possible to have the first 50% of the rehab money at the closing to get started right away. Then once that works is completed, an appraiser comes out to check out the work and then reports back to the bank and they release the last 50% of your rehab money.

If you have any other questions, you may contact me. I have closed many deals for buyers using this loan.

Happy House Hunting!
Sheri Mapes the Cincy House Expert with Coldwell Banker
sheri.mapes@cbws.com (Email)
(513) 253-7156

Yes J they both require inspections but the 203k is a little different. On the 203k you go over what is needed with a FHA approved consultant. You have to get estimates for the loan approval and signed contracts to be able to close the loan. The contractors all have forms to fill out for FHA. Here is a link to the general details on a FHA 203k loan.
http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

By the wat I saw a nice property that was being duplexed in Mt Healthy. New furnace and new floor in the kitchen for 30k. It looked like it got forclosed on someone rehabing it. Good luck!