What do buyers mean when they say...

[Robert Carter]

I know watching HGTV is not real life, I get it.  But a potential buyer qualified for a $550K home but they selected a home that was $499K.  Then the buyer said "oh great now we can use the other 50k to make upgrades like paint, fixtures and floors".  Can they use the rest of the pre-approve loan to make changes to a turnkey home?  If so how does that work? Are they using 203k loan, construction loan, or something else entirely?  

[Dave Spooner]

@Robert Carter Lot's of banks will lend an additional construction budget. Some of the products mentioned like the 203k and Homestyle will do it, but there are other financing options. You typically just have to put a minimum of 20% down on the construction budget if you go direct (i.e. not a 203k). So it's more expensive up front, but you can still get the money!