No down payment- appraises for double the cost

[Alan Modracek]

Hi- I am currently leasing a property that I have made a number of improvements too. I wrote a purchase price into the lease of 145,000, the value when I signed the lease. I applied for financing and was approved from US Bank, but they want 20% down. The property appraised for 280,000. What are my zero down options? My plan is to sell the place the middle of next year when I no longer need  it, but I dont want to do anything crazy because there is always a chance I will sit on it for a year trying to sell it. I need to be able to afford to let it sit empty, no problem with conventional financing for 160,000 (purchase price and closing costs) 

[Daniel Chang]

In a new purchase, the bank takes the lower of the appraisal or the purchase price.  So just because it appraises for double,  as a new purchase, the bank doesn't care.  It looks at the purchase price.  

0% down from a single commercial lender is unheard of.  Since you occupy the property, you may be able to qualify for a SBA loan for 10% down.  That's probably as close as you are going to get.  Of course, you can always try to do seller financing or get a private loan as a junior loan on top of the bank loan.