FHA Standard vs FHA 203k

[Julius Agonor]

Hello BP Community!

I'm currently looking at getting an FHA203k loan to purchase a rehab property that I'll be using as a house hack. Admittedly, before learning more about 203k, I got preapproved for a standard FHA loan. I'm curious as to how differently the amount I was approved for the FHA will be in comparison to that of a 203k, if at all. (i.e. FHA approved for $480,000.00 vs "203k" approved for $350,000.00 OR FHA = 203k)

I'm not overly concerned with applying for the preapproval for the 203k, however I'd rather not waste the time and credit points until I have found something that I'm interested in. Hoping there's a potential "rule of thumb" that can be applied, so that I can start considering properties of interest. 

Thanks in advance!

[Zack Karp]

@Nathan P. I'm not sure that I understand your question.

If you purchase and rehab with anything...cash, private money, mortgage, etc, doesn't matter...then after 6 months you can do a cash out FHA refi up to 80% of the new appraised value (it used to be 85%).

There is also something called Delayed Financing, which is a Conventional loan, where if you purchase without a lien (cash, private money, etc), then within 6 months you can cash out your acquisition money, up to the cash out LTV limit for the occupancy and property type (70%-80% depending on primary vs investment and 1-unit vs 2-4 unit).

Not sure if that's what you were asking.  Your best bet is to get with a rockstar LO that knows their stuff when it comes to investor financing and knows all the angles.  Unfortunately I'm not licensed in UT, but if you need a referral to a rockstar there, PM me and I'll connect you.

Best of luck!