Another 203k Question

[Bobby R.]

A bank owned house in suburban MD came on the market for a remarkable price. It needs significant work (so a full 203k is needed, not the stremline version) and updates, but even after that, the cost would be less than comps.

After reading other questions and answers on BP, I still have other questions.

One person mentioned "luxury items" that FHA would not allow. What's considered luxury? Can I replace the blue Formica kitchen countertops with granite/quartz or with another Formica top? Is it better to buy the REO with conventional lending then rehab with a cash out refi or a second?

There’s confusion on whether the CC can be rolled into the mortgage. What’s the latest on that?

Lastly, how long does it take to get an offer on the table?