Using Equity in the investment to purchase

[Dave S.]

Here is the scenario, Please let me know if this is legit or if not what other means can i accomplish utilizing all the equity in the property....

An agreement between me and seller is to buy the property at $100K, property is worth and will appraise for $150K. If i use a HELOC to purchase and have a contract with seller to provide the difference after closing, is this legit? I will use the funds to mostly pay off my HELOC.

Has anyone come across a bank that will utilize the equity in the house above the sale price and put that towards the downpayment???