Simply submit your bids for the improvements at the time of the loan application, and Capitol Federal will appraise the house taking your bids for improvements into consideration. This allows you to borrow for your improvements now by taking advantage of the higher improved value.
How Purchase + Improvement loans work.
Additional program requirements apply. Owner-occupied only.
| 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.
Related Resources
Mortgage FAQ
Loan Preapprovals
Home Insurance
Home Equity Loan
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