Craig- A 203 K loan takes the Acquisition and Fix-up Costs totaled together minus
your down-payment to arrive at the loan amount to be considered. In the case you
mention: Acquisition cost is $ 60,000. That's what you are paying the seller , thats
the purchase price of the house, and so recorded. You may want to put a contingency
in your purchase offer that you must be able to secure the added fix -up funding.
The Program requires a second appraisal for "after fix - up value " . There are limits to
the amount you can finance for repairs related to the 2nd appraisal value. You must
qualify, the specified repairs must be priced at standard cost, and sufficient to bring
the house up to FHA property standards and local building codes.
There are " HUD CERTIFIED " 203K consultants that you can employ to help on
the fix-up end. The lender may require one. The Bank or the Sales agent should be
able to refer you . Good Luck! 203 k is involved , but a great program!
Bob Brubaker Highlight Realty West Palm Beach, FL.