Lender will do 80% of purchase price and not 80% of appraised value.

[Tyler Speelman]

Hi fellow real estate investors, 

We have a home under contract that appraised above the purchase price. Prior to the appraisal the lender said they would do 80% LTV. Lender is now saying they will loan on 80% of the purchase price and not the appraised value. How would you handle this?

As a side not we planned to use a line of credit from the same lender as the down payment. 

I'm considering asking if they would loan based on the appraised value if we used our own money for down payment. Curious to see what your thoughts are though.

Thanks in advance,

Tyler