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Ribbon Appraisal Protection

Ribbon will cover the appraisal gap, so you can win your dream home, even if it under-appraises.

What we cover

Appraisal Protection provides extra coverage in case there is a gap in value, so you don't lose the home you love.

Appraisal Value

Appraisal Value
This is an objective, third-party assessment of a home’s market value ordered by mortgage lenders to determine the amount that the buyer may receive as a mortgage for a property.

Offer Price
Ribbon Max Value

Ribbon Max Value
This is the maximum purchase price Ribbon is willing to offer for a particular listing. You can arrange an offer that is higher than the Ribbon Max Value, but you will have to cover the difference.

Appraisal Protection Coverage
Appraisal Protection Coverage

Ribbon will provide coverage up to the Ribbon Max Value of the property.

Select state

To learn more about Appraisal Protection, select the state where you are looking to buy a home.

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Flexible payment options

You can choose between two payment options when you write your RibbonCash offer.

How it works:
Appraisal Protection Deferment

You find a home you love

The most common way to buy any home is to borrow a large chunk of money (also known as a mortgage) to pay for it. Mortgage lenders use the appraised value of the home to calculate how much money they’re willing to give you to purchase a home.

Note: Appraisal Protection Assurance is only eligible for homes that have not yet received an appraisal.

How it works:
Appraisal Protection Deferment

We provide cash at closing to cover an appraisal gap

If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow. That’s where Appraisal Protection comes in. We cover the gap up to the Ribbon Max Value.

What is a Ribbon Max Value?

Ribbon Max Value
This is the maximum purchase price Ribbon is willing to offer for a particular listing. You can arrange an offer that is higher than the Ribbon Max Value, but you will have to cover the difference.

Note: Appraisal Protection Assurance is only eligible for homes that have not yet received an appraisal.

How it works:
Appraisal Protection Deferment

When your home appreciates, we all win

If you sell or refinance within 30 years, Ribbon will get paid the Appraisal Protection Amount and Service Fee from the sale proceeds—not your pocket.

Note: Appraisal Protection Assurance is only eligible for homes that have not yet received an appraisal.

How it works:
Appraisal Protection Deferment

If it depreciates, we won't ask for anything

If you sell or refinance within 30 years and your home value is less than the original appraisal amount, you only pay a nominal fee (under $100). Sharing in the loss means that if you don’t profit from a sale or refinance, neither do we.

Note: Appraisal Protection Assurance is only eligible for homes that have not yet received an appraisal.

How it works:
Appraisal Protection Deferment

You can repay Ribbon at any time

You can choose to pay Ribbon back the funds we provided and Service Fee at any time. We even provide generous payment caps based on when you choose to pay Ribbon.

Note: Appraisal Protection Assurance is only eligible for homes that have not yet received an appraisal.

How it works:
Appraisal Protection Pay Later

Step 1

Find a home you love

If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow. That’s where Appraisal Protection comes in. Opt in while writing your offer and Ribbon will cover any appraisal gap up to Ribbon Max Value, eliminating the appraisal risk.

Note: Appraisal Protection Pay Later is only eligible for homes that have not yet received an appraisal.
Step 2

We provide cash at closing to cover an appraisal gap

If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow. That’s where Appraisal Protection comes in. Opt in while writing your offer and Ribbon will cover any appraisal gap up to Ribbon Max Value, eliminating the appraisal risk.

Step 3

When your home appreciates, we all win

If you sell or refinance within 30 years, Ribbon will get paid the Appraisal Protection Amount and Service Fee from the sale proceeds—not your pocket.

Step 4

If it depreciates, we won't ask for the funds we provided back

If you sell or refinance within 30 years and your home value is less than the original appraisal amount, you only pay a nominal fee (under $100). Sharing in the loss means that if you don’t profit from a sale or refinance, neither do we.

Step 5

You can repay Ribbon at any time

You can choose to pay Ribbon back the funds we provided and Service Fee at any time. We even provide generous payment caps based on when you choose to pay Ribbon.

The total cost for you

If you sell or refinance within 30 years, Ribbon will get paid the Appraisal Protection Amount and Service Fee from the sale proceeds—not from you.

Appraisal Protection Amount

Appraisal Protection Amount
The funding Ribbon provides to cover the gap between your contract price and the appraisal value.

+
Service Fee
10% x Home Price Appreciation

Home Price Appreciation
This refers to how much the appraisal value of a property has increased over time.

at time of sale, refinance, or when you
choose to pay Ribbon

Note: Your home's value is likely to increase the longer you own it. If you'd like to pay before you sell or refinance, you have the option.

Pay $0 for Appraisal Protection if:

You end up not selling or refinancing your home within 30 years.

Your home's appraisal value depreciates at the time of sale or refinance.

With Ribbon Appraisal Protection Pay Later, we don't ask for anything from you in the scenarios above. Visit our FAQ for more details.

See our pricing in action

Fill in the following calculator and we'll let you know how we can help.

Initial Offer

Ribbon Max Value

Ribbon Max Value
This is the maximum purchase price Ribbon is willing to offer for a particular listing. You can arrange an offer that is higher than the Ribbon Max Value, but you will have to cover the difference.

$0
Offer Price
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Down Payment
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Max Loan to Value (LTV) ratio

Max Loan to Value (LTV) ratio
The loan-to-value ratio is the amount of the mortgage compared with the value of the property. It is expressed as a percentage. If you get an $80,000 mortgage to buy a $100,000 home, then the loan-to-value is 80%, because you got a loan for 80% of the home's value.

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Mortgage (based on LTV)
$0
STEP  1 / 4
Start with the basics

Fill in how much you're willing to offer.

Note: The Ribbon Max Value (RMV) is set to match the offer price. In instances that the RMV is lower than the Offer Price, you'll need to bring that difference as cash at closing.

Our minimum purchase price is $150,000 and our maximum purchase price is $700,000.

Bank Appraisal

Appraised Value
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STEP  2 / 4
Add the estimated appraisal
No Appraisal Protection needed

This is the value of the home—as determined by your loan officer. It is the amount they're willing to loan you so you can make an offer. If it doesn't match the amount you want to offer then you'll end up with a gap.

If you haven't had an appraisal yet, feel free to use hypothetical numbers to see your estimated appraisal protection.

If the Appraisal Value of your home is greater than or equal to the Offer Price, you won’t need Ribbon Appraisal Protection.

Contract details, post-Appraisal

Amount to seller
(Offer Price)
$0
Final Contract
$0
Down Payment
$0
Mortgage (based on Max LTV)
$0
Appraisal Protection Amount
$0
STEP  3 / 4
This is how much of the gap we'll cover

As you can see, your contract price has been adjusted. The seller still receives the same amount.

When you sell or refinance in the future, Ribbon will be paid through the transaction. You can also pay back before this stage if you'd like.

How the Appraisal Protection Amount is calculated: Offer Price - Appraisal Value = Appraisal Protection Amount

Appraisal Protection Cost Estimate

Home Price Appreciation
(or Depreciation)

Home Price Appreciation
This refers to how much the appraisal value of a property has increased over time.

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Payment to Ribbon
$0
Appraisal Protection Amount
$0
Service Fee
$0
Cap on Ribbon payout
$0
STEP  4 / 4
Ribbon is paid only if your home value appreciates

Ribbon is paid from the sale or refinancing of your home—not from you. If you don't sell or refinance within 30 years, Ribbon asks for nothing.

The payout is calculated by adding the Appraisal Protection Amount and the service fee and is capped at 2x the Appraisal Protection Amount.

The service fee is 10% of the Home Price Appreciation (HPA) at the time of sale or refinancing. The service fee percent is the same if you choose to submit payment to Ribbon before selling or refinancing.

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Frequently asked questions

Can I pay the appraisal gap without opting into Appraisal Protection?

If you chose "Pay Later" Appraisal Protection, you do have the option to bring additional cash to close the deal instead of signing our options agreement contract.

What is an options contract?

It is a contract that gives Ribbon the option to purchase a percentage of the home at a pre-determined price upon a sale or cash-out refinancing. However, this contract also gives the homeowner the ability to cancel this option by using the proceeds of the sale or refinance to pay the Appraisal Protection Amount and Service Fee).

Are there really no monthly payments associated with Appraisal Protection?

Correct. Ribbon is not a lender and does not make loans to the buyer. The options contract only gets triggered at the time of sale or or a cash-out refinancing.

What happens if value of my home has dropped when I sell or refinance?

Yes, Appraisal Protection Pay Later cannot be used for homes that buyers have received an appraisal for prior to submitting an offer.

What’s the catch?

Yes, Appraisal Protection Pay Later cannot be used for homes that buyers have received an appraisal for prior to submitting an offer.

Frequently asked questions

Can I pay the appraisal gap without opting into Appraisal Protection?

Can I pay the appraisal gap without opting into Appraisal Protection?

What is an options contract?

Can I pay the appraisal gap without opting into Appraisal Protection?

Are there really no monthly payments associated with Appraisal Protection?

Yes, Appraisal Protection Pay Now cannot be used for homes that buyers have received an appraisal for prior to submitting an offer.

What happens if value of my home has dropped when I sell or refinance?

Yes, Appraisal Protection Pay Now cannot be used for homes that buyers have received an appraisal for prior to submitting an offer.

What’s the catch?

Yes, Appraisal Protection Pay Now cannot be used for homes that buyers have received an appraisal for prior to submitting an offer.

How it works:
Appraisal Protection Assurance

Find a home you love

The most common way to buy any home is to borrow a large chunk of money (also known as a mortgage) to pay for it. Mortgage lenders use the appraised value of the home to calculate how much money they’re willing to give you to purchase a home.

Note: Appraisal Protection Assurance is only eligible for homes that have not yet received an appraisal.

How it works:
Appraisal Protection Assurance

Opt-in for Appraisal Protection when writing your offer

If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow. That’s where Appraisal Protection comes in. Opt in while writing your offer and Ribbon will cover any appraisal gap up to Ribbon Max Value, eliminating the appraisal risk.

Note: Appraisal Protection Assurance is only eligible for homes that have not yet received an appraisal.

How it works:
Appraisal Protection Assurance

Submit your buyer deposits

If your appraisal comes in low, Ribbon will cover the gap up to the Ribbon Max Value. You will just be responsible for the Ribbon and Assurance Fee.

If the offer is accepted but no gap is present, you'll pay the Ribbon and Assurance Fee.

Note: Appraisal Protection Assurance is only eligible for homes that have not yet received an appraisal.

How it works:
Appraisal Protection Assurance

We provide cash at closing to cover your appraisal gap

If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow. That’s where Appraisal Protection comes in. We cover the gap up to the Ribbon Max Value to eliminate the risk for you.

Note: Appraisal Protection Assurance is only eligible for homes that have not yet received an appraisal.

How it works:
Appraisal Protection Pay Now

Step 1

Find a home you love

The most common way to buy any home is to borrow a large chunk of money (also known as a mortgage) to pay for it. Mortgage lenders use the appraised value of the home to calculate how much money they’re willing to give you to purchase a home.

Note: Appraisal Protection Pay Now is only eligible for homes that have not yet received an appraisal.
Step 2

Opt-in for Appraisal Protection when writing your offer

If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow. That’s where Appraisal Protection comes in. Opt in while writing your offer and Ribbon will cover any appraisal gap up to Ribbon Max Value, eliminating the appraisal risk.

Step 3

Submit your buyer deposits

If your appraisal comes in low, Ribbon will cover the gap up to the Ribbon Max Value. You will just be responsible for the Ribbon and Pay Now fee.

If the offer is accepted but no gap is present, you'll pay the Ribbon and Pay Now fee.

Step 4

We provide cash at closing to cover your appraisal gap

If the appraisal comes in lower than the purchase price, your lender will likely decrease the amount you can borrow. That’s where Appraisal Protection comes in. We cover the gap up to the Ribbon Max Value to eliminate the risk for you.

The total cost for you

Opting in to Ribbon Appraisal Protection Pay Now means that in the event that your home appraisal comes in low, we will cover any appraisal gap up the the Ribbon Max Value.

Pay Now Fee
1% x Purchase Price
This fee is non-refundable.

Good news! The deposits you pay at the time you make an offer cover this fee. Ribbon requires 2% of the purchase price in deposits to use Boost but credits buyers 1% if you close with your own financing.

Opting in to Ribbon Appraisal Protection Pay Now means you will not receive the 1% credit as it will be used to cover the Pay Now fee.

Frequently asked questions

What homes are eligible for Appraisal Protection Pay Now?

Appraisal Protection Pay Now cannot be used for homes that buyers have received an appraisal for prior to submitting an offer.

Is the Pay Now fee refundable?

The fee is collected as part of the earnest money deposits for your offer, and is payable to Ribbon at closing.

When is the Pay Now fee collected?

The 1% fee is non-refundable. Ribbon collects this fee for taking on the risk that the home might have had a low appraisal.

Looking to review Appraisal Protection’s benefits?

Review how Ribbon can help you own your dream home, even if it under-appraises.

Visit the Appraisal Protection landing page