30% Down or 30% Equity?

[Joshua Durrin]

Hi,

I'm curious. With capturing deals with built in equity (let's just stick with the 70% ARV for now, but assume also that the house is move-in ready... as such 30% of current market value), do I need to put money down (say 3.5% for an FHA loan) when I have 30% equity built into my purchase price?

Assuming the appraisal comes back with a value much higher than I'm paying for it, is that spread enough to waive the downpayment requirement?

[Brie Schmidt]

@Joshua Durrin Are you asking if you are buying a house worth $100k at $70k do you still need to put down a down payment?  The answer is yes.  Your down payment is based off the purchase price.  

If you are really buying that much below market value after title seasoning of 1 year you can refinance based on the current market value.