Conventional LTV and Appraisals

[Allan A Ramirez]

Hello, I have a question, let’s say you’re looking at a multi-unit and the seller agrees to an MLO(master lease option) for three years at an option to buy for $400,000. At the end of three years, because of your repairs and management of the property, the home appraises for $800,000. Will a conventional loan be for 75% of the sales price or the appraised value? That’s it, thank you to anyone who can answer this!)