Seller Financing to Mortgage

[Jacob Wiltshire]

Hello,

So I am looking to do a deal with seller financing. It's looking promising. My question is at the balloon time can I refinance into a mortgage using appraised value or does it go back to purchase value for a banks LTV?

Example if the house I purchase is worth $90K but I agree seller financing at $62K, when I get to the ballon can I use the equity difference in my loan amount to the seller and the value of the building as the down payment?