If I take a loan for $200,000 and the home costs $185,000 can I use the extra 15K for renovations?

I am amazed at some of the responses:

1. "Its' pretty rare to get more than 90% of the property's value." This is plain wrong! It is rare to get financing greater than 100% of loan-to-value, but it's very common to get financing for 95%, 97%, and 100%.

2. "It has to appraise out at $200,000 [to get a loan for $200,000]." This quote needs clarification. If the agreed upon sales price is $185,000, conforming/conventional (FNMA) lenders will loan a max of $185,000. Conforming lenders will loan on the LESSER of the appraised value or agreed upon sales price. There may be some non-conforming lenders that will lender on the greater of the two, but you will pay through the nose for a high rate.

*** Guys, if you haven't worked in the mortgage business, please be very careful as to the information you pass along.

He should... But you know what. You may want to contact your divorce lawyer again. This may get pretty difficult. I'm very surprised they finalized the divorce knowing there was a house in both your names. That seems fishy but I'm sure those things vary from state to state. Yet it's very odd the courts didn't see this. A house is a huge deal to the courts. Bigger then a car or student loans. You will have to "Buy" him out of the house. A lawyer can explain all that to you! You also have to understand if you refi, are you able to take care of this mortgage on your own? It's difficult to get his name off the mortgage now days! I really think you need to contact a lawyer. They can give you better advice then any of us can on yahoo answers. There are so many difficult angles to this whole house with a divorce thing.

It's pretty rare to get more than 90% of the property value in a loan. Some companies do offer 125% of the home value so it is possible.

Also, if you can prove the property will be worth more than the 200K when renovations are complete, they may do it but only if your credit is excellent

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You'd have to do it in two loans. They aren't going to let you take more cash out on a home purchase than your deposit.

The second loan you'd probably want is a Home Equity Line of Credit, a HELOC. You pay a fee to set it up, then you get checks you can write up to a set limit for a set period, like five years. You only pay the interest on what you've used. A lot of people use these for home improvements.

It has to appraise out ( the house value must be $200.000 ) You can get 125% loan to value but you must have great credit.

,There are ways like cash back but you must and apply for that specific mortgage ,and Texas ,you need to go ogle Texas and cash back mortgage ,for lenders in your state

and some other maneuvers if your seller will accommodate ,that are not so up and up , you need the right broker to arr age