The loan amount can exceed the purchase price because the FHA bases the loan amount on the after-improvements value of the home. Overall, you can borrow up to 110 percent of the home’s current value with one of these loans.
Can you take out more on your mortgage for renovations?
You can borrow more money than a house would originally be appraised for to account for planned renovations. Your interest rates and down payment can be lower than with a traditional loan. Your interest may be tax deductible.
