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Q: The property I am considering to buy has an appraised value that is more than the purchase price. Can I use the difference towards my down payment?

Fri, Jun 24th, 2011
Posted in Ask the Expert

Mary Schwarz Lender

A: Unfortunately, if you are purchasing a home, we have to use the lower of the appraised value or the sales price to determine your down payment requirement.

It is a great benefit to you if you are able to purchase a home for less than the appraised value. However, credit policies do not allow for the use of this "instant equity" when making a loan decision.

100 St. Anthony Street N., Preston 507 765 3823

229 Main St. N., Chatfield

507 867 1605

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