Generally 203K loans are for major renovatons. The money is held in escrow at closing and the work would be done after closing. The money is then paid from the escrow account directly to the contractor. If you need minor repairs as you stated, windows, carpeting, appliances, it would be to your advantage to negotiate a contract where the you offer more money and have the seller pay 6% of your closing costs thereby leaving you with the cash to do the minor repairs. Of course that woud assume that the house would appraise for a greater amount and that the market analysis supports the price that you would be offering. For example: if you are looking at a home that is priced at $100,000 and the analysis that your agent has done for you shows that the house most likely could appraise for $120,000 ,and assuming that you are putting the minimum down (3.5% FHA) you would need your down payment of $4200. You would then be financing $115,800. At 4.5% interest rate, the cost is $5.07 per thousand so the difference in your payment for $120,000 vs. $100,000 would be $100 per month (principle and interest - $587 vs $489). You would have $7200 to spend on appliances and carpet. The windows may have to wait until next year. Ask your agent about this. If you don't have a buyer's agent you can call me and I can help you out.