Sale price vs appraisal

[Ishviyan D.]

If an appraisal comes in at a higher amount than the sale price, does the lender fund based on the appraised value or the sale price? E.g, sale price is $80000. Appraisal comes in at $100000. If the bank lends at 80% LTV, would it provide funding in the amount of $64000 or $80000? If the latter, is the buyer essentially getting 100% financing for the purchase? I'm not tracking the mechanics. Any clarification would be appreciated. Thanks.