Ask your preferred lenders if they do and if they don't, I'll bet they know someone who does. Good luck, Eddie!

All sorts of lenders out there, some even loan on ARV.  Sit down with a half dozen of them, let them know what you need, and someone will be able to help.

I wish you and your client all the best with this. 

Lenders lend on appraised value. But I don't know of many lenders who will lend on equity gained during construction... that's the kind of speculation that caused some of the last real estate meltdown.

Eddie Chang no one can "pick" an appraiser so it wouldn't matter if we knew one or not. That being said they are always supposed to appraise on value BUT it's the value at the time of the appraisal and not a day later.

So long as your not making this change after everything's allready in place for the loan then I would think, if permissible, your lender would love to lend you more.

The other side of it is you are putting less down & there are minimum deposit amounts you have to meet, depending on the type of loan.

Because I don't know the particulars (where you are in the transaction or what type loan you are getting) I'd just say tell the mortgage person that you want to lower the deposit amount & increase the loan amount by $__ & see what they say. 

That’s a tough one.  Interesting .  Massive appreciation?  What are the comps if it is still preconstruction

I read several of your answers.  Apparently your question is not clear.  Let me see if it is clear to me.  You have sold a pre construction condo for $200000 in the recent past.   The tramsaction has not closed because the condo is not built yet.  Today that same condo is appraissing for $250,0000.  Your question is does anyone on this forum know a lender that would make a loan ( say an 80% LTV ) based on the $250,000 appraisial.  That would be a $200,000 (100% LTV)  loan.  You are not going to find any lender that will do that.  

You have great answers here.  The right lender may be able to help.

You should check local lenders, credit unions or such that work with condos in situation like this. 

 Contact lender in your area who finances condos.

Speak with a mortgage broker licensed in your state. 

That usually only happens when you ask for an appraisal without a contract.

Lenders want borrowers to have "skin in the game".

If a lender lent on current appreciated value, buyer could get 100% financing of more. If there is a recession with an accompanying dip in real estate values, the property would be "under water" with the owner not having any equity.

History is supposed to teach us lessons. What lenders learned is not to make loans like your buyer is looking for on the same rates and terms as conventional financing. 

Yes but interest rate is hard money, not conventional or government.

The problems to look for

- appraiser might not give you this value. 

- lender and you cannot choose the appraiser, it is random and third party

- lender digs into relationship of buyer and seller

- what happens when seller finds out?

Whether the loan is Conventional, VA, or FHA, Lenders base their Loan-to-Value (LTV) calculations on the loan amount divided by the LESSER of the purchase price or appraised value.

With the above in mind, there is always a possibility of the Buyer/Borrower putting less of a "percentage" down and still qualifying. It would be on a case-by-case basis, once the Lender reviews the overall Borrower profile.

They should be looking at appraised value.  The contract price is just one of several things they look at. 

John Meussner Any thoughts?

 Last 15 years only 1 appraisal was 5K over offered price. Many came out short and buyers had to pad the difference or lose deposit.

Most buyer release all contingencies at the time of making offer.

Ask the seller to reduce the price.

Talk to your local lenders.  A