Yes and no. Yes if you live in ANY state but Texas. Sounds bad, but it’s true. There any many ways of structuring this kind of deal so you get what you’re looking for. Time to go to school!
I have a simple question. If I were going to buy a house for $100,000 and it got appraised for $130,000, do I automatically have $30,000 equity in the house. And if so, would a conventional lender normally waive the 10% or 20% down since I already have this equity. Thanks
Most lending banks finance properties based on the lower of the appraised value and purchase price. In every purchase I have made through a bank the purchase price has been substantially lower than the appraised value. Unfortunately the bank will only finance based on the purchase price. However, once you own the house and you feel you have gotten a great deal you can refinance which will be based on the appraised value. This way you can get some cash and in many of my purchases resulted in no-money down purchase.
Yes and no. Yes if you live in ANY state but Texas. Sounds bad, but it’s true. There any many ways of structuring this kind of deal so you get what you’re looking for. Time to go to school!