Explain "Repair Allowance" in regards to closing and buying

[Christian Beebe]

Always working to learn here and currently learning about all the ways to finance a down payment and one of the lists we had read mentioned using a repair allowance.  You inspect the property and determine what need to be done in repairs. You add up the cost and have that money given back to you at the closing.

So without sounding dense, how exactly does this work?  Is this with a normal loan, meaning let's say the property is worth $1,000,000 and you can buy it for $650,000.  So you would put in the $100k with the loan at the same time for a "repair allowance" which would go into the loan but would be given to you at closing which you could use for the down payment on the same property?

We have a couple properties with this type of criteria so trying to figure out exactly how to use this and make this work.