Is it possible to get a mortgage loan slightly above the selling price of the home?

Great question dman. There are several different renovation loan options (both FHA AND conventional) where the cost of the repairs or improvements needed/desired can be added to the loan amount. Example: Purchase price is $190,000 and you need 10,000 for repairs. The loan is based on $200,000 total cost rather than the $190,000 price. Appraisal MUST support the higher amount thought. Your downpayment can be as little as 3.5% of the total cost or appraisal (whichever is lower). Not all lenders offer all the options available. I have a blog on this site about renovation loans - and I do work in PA, just closed a loan in Pittsburgh area last month. pdumouchel@primelending.com or 843-619-6025 if I can help.

Your options are limited for rehab. You could consider an FHA 203k Streamline (minimum repairs $5k), but with a modest budget for repairs like you are considering, it may not make sence. The rates are lightly higher on a 203k and there are additional costs. You may be better off in the long run paying for the repairs in stages as your budget allows or put them on a low interest credit crcard, or personal loan.

PS. Stronger buyers generally prefer a conventional loan, the loan fees are less, PMI is less and does not last the life of the loan. There are not as many lenders who offer the conventional option.

In short, there are loan products that allow for the financing of improvements above and beyond the sale price of your new purchased home, however most lenders charge a premium for this type of loan.. (higher fees and rates).. if you only need 3K-5K for repairs, it would not make sense to use one of these higher priced loans since that $3-$5K could cost you double or triple.. your better off using a credit card.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Have you been in a cave the last 6 years?