Can i buy a house for 25k and have equity if its valued at 50k?

[James Cress]

Im thinking about investing in a 25k single family home thats actually valued at 57k. Will i instantly have 25k usable equity?

[Kyle J.]

No for two reasons. #1 - Most lenders will not loan at 100% LTV so you wouldn't be able to use the full $32k in equity that you may have. And #2 - Most lenders will require some "seasoning" period of ownership (usually at least 6 months), especially if you're looking to use a value more than double what you purchased it at.