Can you get a mortgage for more than the price of the house?
We are thinking about purchasing a home that needs A LOT of work. Is it possible to get the mortgage for above the selling price? or is our only option to take out a second loan??
Andy advice is appreciated 
Renovation loans such as the FHA 203k program are used to make improvements to an existing property. They can be used to make simple up-grades to a home, such as a kitchen or bath improvement, or to completely re-construct a home that is presently un-livable. They can also be used to tear down an existing structure and re-build a new one using some portion of the existing foundation, or to move a building you purchase or own onto land that you purchase or own...............
Check it out - it may be just what you need. good luck!
http://www.203k.net/loans/renovation/
The answer is "yes" but not very often. ChipNJ's suggestion about an FHA 203K is a good idea, especially if it's well administered, and you aren't an experienced rehabber.
Another possibility is using a hard money lender. This "tool" will often allow an acquisition loan of up to 70% of the as-is, fair market value irrespective of sales price. So if you are able to negotiate an especially good deal, you won't be penalized.
If you are going to move into it and don't own any other properties, 203k is perfect!!
If it's an investment property, I'd use my revolving credit lines to do the work before flipping it...no closing fees with credit cards.
hope this helps,
clear2close
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