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Appraisal under purchase price

Started by Miette
over 16 years ago
Posts: 316
Member since: Jan 2009
Discussion about
What happens if your appraisal comes in low, but you're putting a lot (~50%) down? In that situation, how much leeway is the mortgage lender willing to give you?
Response by tandare
over 16 years ago
Posts: 459
Member since: Jun 2008

Don't know of anyone who's been in this situation. But the standard response from the lender is: we will only write a mortgage for the amount of the appraisal, and no more (less the % down payment).

Perhaps someone else can address this more specifically....

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Response by Riversider
over 16 years ago
Posts: 13572
Member since: Apr 2009

clearly it is possible for two parties to enter into an above market transaction. If the appraisal is done correctly it will fail to recognize the transaction as "market". If the lender is has approved your type of property for 30% down, then it's based on appraisal ltv not transaction price.

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