RibbonCash+ Fees and Calculations

Use our RibbonCash+ Calculator to better understand our process and how we determine costs associated with making higher offers

What we cover

Ribbon Appraisal Protection provides extra coverage when you need to make a competitive offer.

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
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.

Ribbon Value
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
Appraisal Protection Coverage

This is the price that Ribbon estimates the home you make an offer on will appraise at.

Flexible payment options

You can choose to pay the RibbonCash+ fee Now or Later.

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.

The total cost for you

Pay a non-refundable fee by submitting it in the Earnest Money Deposit. The RibbonCash+ Pay Now fee is in addition to other Ribbon fees.

Pay Now Fee
$250 for every $1,000
above the Ribbon Value up to your Max Ribbon Value
(the fee for opting in is non-refundable)

Note: You'll need to bring cash at closing to cover any amount above the Max Ribbon Value.

See our pricing in action

Fill in the following calculator to run different scenarios to see how RibbonCash+ fees work. Use estimates or placeholder numbers in order to run simulations.

Offer Details

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
Ribbon Value

Ribbon Value
Ribbon's best estimate of the property’s value in today's market.

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Max Ribbon Value

Max Ribbon Value
The maximum offer amount Ribbon will fund on a given property.

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Pay Now Fee
$0
Cash on Close

Cash on Close
This is the additional cash amount you will need to bring at closing to cover the amount above the Max Ribbon Value.

$0
Note: The calculations provided are estimates only and are based on the numbers you input into the calculator. The actual amount will be calculated at the time of closing.
Estimated cost of Pay Now

Put in your offer price, Ribbon Value and Max Ribbon Value.

The Pay Now fee is non-refundable and is submitted in the Earnest Money Deposit.

Note: You'll need to bring cash at closing to cover any amount above the Max Ribbon Value.

Please update one or more of your inputs. Our minimum purchase price is $100,000 and our maximum purchase price is $1,000,000.

Frequently asked questions

For more information about RibbonCash+ and how it works, visit our RibbonCash+ FAQs.

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.

The total cost for you

Fees are deferred until a future sale or cash out refinancing event, and are based on the home appraisal and appreciation. The RibbonCash+ Pay Later fee is in addition to other Ribbon fees.

Appraisal Gap Amount
+
Service Fee
25% x Home Price Appreciation

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

(at the time of sale, cash-out refinance, or
when you choose to pay RIbbon)

The total repayment is capped at 3x the original appraisal gap amount.

If your home's appraisal value depreciates at the time of sale, a cash-out refinance or another exercise event, pay only $10 as your RibbonCash+ fee.

Visit our RibbonCash+ FAQ for more details.

See our pricing in action

Fill in the following calculator to run different scenarios to see how RibbonCash+ fees work. Use estimates or placeholder numbers in order to run simulations.

Initial Offer

Offer Price
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Max Ribbon Value

Max Ribbon Value
The maximum offer amount Ribbon will fund on a given property.

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Cash on Close

Cash on Close
This is the additional cash amount you will need to bring at closing to cover the amount above the Max Ribbon Value.

$0
Down Payment
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Oops! Something went wrong while submitting the form.
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.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Mortgage (based on LTV)
$0
STEP  1
Start with the basics

Put in your offer price and Max Ribbon Value.

The Max Ribbon Value is the maximum purchase price Ribbon is willing to offer for a particular listing.

Note: You'll need to bring cash at closing to cover any amount above the Max Ribbon Value.

Please update the Offer Price. Our minimum purchase price is $100,000 and our maximum purchase price is $1,000,000.

Please update the Max Ribbon Value. The Max Ribbon Value can only fall within the range of $100,000 to $1,000,000.

Bank Appraisal

Appraised Value
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Ribbon Value

Ribbon Value
Ribbon's best estimate of the property’s value in today's market.

Thank you! Your submission has been received!
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Ribbon-funded Appraisal Protection

Ribbon-funded Appraisal Protection
This is the amount Ribbon will cover at no additional cost to the buyer if you receive a low appraisal.

$0
STEP  2
Add the estimated appraisal
No Appraisal Protection needed

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

The Ribbon Value is Ribbon’s best estimate of the value of the house in today’s market.

If the Offer Price is less than or equal to the Ribbon Value or Appraisal Value, no additional RibbonCash+ fee is required.

Please update the Ribbon Value. The Ribbon Value can only fall within the range of $150,000 to $1,000,000.

Appraisal Gap Amount

Amount to seller
(Offer Price)
$0
Final Contract
$0
Down Payment
$0
Mortgage (based on Max LTV)
$0
Difference
$0
Ribbon-funded appraisal amount

Ribbon-funded Appraisal Protection
This is the amount Ribbon will cover at no additional cost to the buyer if you receive a low appraisal.

$0
Appraisal Gap Amount
$0
STEP  3
Your appraisal gap amount

Any appraisal gap amount above the Ribbon Value will determine part of your RibbonCash+ Pay Later fee.

Note: You'll need to bring cash at closing to cover any amount above the Max Ribbon Value.

RibbonCash+ 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.

Thank you! Your submission has been received!
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Payment to Ribbon
$0
Appraisal Gap Amount
$0
Service Fee
$0
Cap on Ribbon payout
$0
Note: The calculations provided are estimates only and are based on the numbers you input into the calculator. The actual amount will be calculated at the time of closing.
STEP  4
Estimated cost for Pay Later

Ribbon is paid during the sale or cash-out refinancing event on your home. You can also choose to pay Ribbon before selling or refinancing.

Pay Later Amount = Appraisal Gap Amount + Service Fee
Service Fee = 25% x Home Price Appreciation

The total repayment is capped at 3x the original appraisal gap amount.

If your home's appraisal value depreciates at the time of sale, a cash-out refinance or another exercise event, pay only $10 as your RibbonCash+ fee.

Frequently asked questions

For more information about RibbonCash+ and how it works, visit our RibbonCash+ FAQs.

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