How Purchase + Improvements loans work.
Additional program requirements apply. Owner-occupied only.
Purchase + Improvement Loan Details
| Sales Price | $150,000 | Total Cost | $200,000 |
| Improvements | $50,000 * | Loan Amount | -$160,000 |
| ___________ | ___________ | ||
| Total Cost | $200,000** | Down Payment | $40,000 |
| The appraisal showing improvements completed equals $200,000, therefore: | Additional 10% of bids | + $5,000 * | |
| (Lower of price + costs, or appraisal) | $200,000 | ___________ | |
| x 80% | Needed at closing | $45,000 | |
| ___________ | plus closing costs | ||
| New Loan Amount | $160,000 |
*Held in escrow for completion.
**Assumes an appraisal of at least $200,000.
Loan information is subject to change. Certain restrictions may apply.
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