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The house appraises for $245,000 and I have a contract to purchase it for $198,000. Can I get a loan for 95% of the appraised value?

April 26, 2017appraised appraises contract House loan purchase

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The house appraises for $245,000 and I have a contract to purchase it for $198,000. Can I get a loan for 95% of the appraised value?

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Loans from financial institutions and many private investors will base the loan amount on a percentage of the contract price or the appraised value, whichever is lower. If you bought it for $198,000 then it is worth $198,000. Some equity lines of credit are based on appraised value.