If my propertys appraised value is more than the purchase price, can I use the difference toward my downpayment?
If you are purchasing a home, the lower of the appraised value or the sales price will be used to determine the amount of your downpayment requirement. It’s still a great benefit for your financial situation if you can purchase a home for less than the appraised value, but like most lenders, we are not permitted to use this “instant equity” when making our loan decision.
Related Questions
- I am about to purchase a property at a price significantly below the assessed value. Will my property taxes be based on the new purchase price or on the assessed value?
- If my propertys appraised value is more than the purchase price, can I use the difference toward my downpayment?
- What is the difference between a propertys appraisal value and purchase price?
