Need some clarification on 203k loan

[Michael D.]

I see many houses for sale, that are stated as "Require 203k loan". I spoke with my mortgage broker and, I'm still not clear on the appraisal process. It seems to me that some of the numbers are based on the After Rehab Value, which is a bit concerning. I'm of course interested in using the 203k as a tool to house hack a property, but I just want to make sure that the bank isn't a step ahead by basing the home and loan off of what this property will be worth once its been rehabbed. Any input would be greatly appreciated!