FHA Loan on Foreclosure?

[Sam Epperson]

Been searching forums and blog posts to find this answer with little luck. First: Can I purchase a foreclosed home using an FHA loan with a 203k loan to rehab it?

Second: If so, is the amount of the loan the value of what that property would be on the market?

Example: home is worth $100k, is in foreclosure for $60k, would need some repairs (and use 203(k) loan for these). Would I get an FHA loan for $60k and put 3.5% ($2100) down? Or would I have to get a loan for $100k and put $3500 down?

I'd plan on living in the property, rehabbing it, renting it out later.