Appraisal higher than purchase price, need help!

[Keenan Green]

Hello everyone!

Any information would be helpful.

I’m looking at a property where it was appraised and listed for 52k but since the the corona virus they have been lowering the price significantly to 36k buy price, the home needs some work. Would you be able to get a loan for the appraisal value and use the difference for repairs etc?

Thank you!

[Guifre Mora]

Originally posted by @Keenan Green:

Hello everyone!

Any information would be helpful.

I’m looking at a property where it was appraised and listed for 52k but since the the corona virus they have been lowering the price significantly to 36k buy price, the home needs some work. Would you be able to get a loan for the appraisal value and use the difference for repairs etc?

Thank you!

No, a mortgage loan is based on the purchase price and the asset's value validated by an appraisal. If the appraisal is higher then you just earned automatic equity.