Banks that loan on appraised value rather than purchase price

[Isa G.]

Just listened to BP REI Podcast 440 and was intrigued by the no-money-down strategy they discussed. Does anyone know of a bank or credit union that gives loans based on the appraised value rather than the purchase price?

Hoping to buy low and use the left over spread to cover the down payment on some buy and holds. 

Thanks,
Isa