A few nuances here related to the numbers:List Price: $449kFirst Offer Received Buyer X: $465k w/ $95k down (with appraisal continency) Final Accepted Offer from Buyer X: $480k w/ $48k down (appraisal contingency removed)Bad Appraisal: $440k (should have been appealed with ROV due to errors but buyer declined; average age of comps was 11.5 months and no inflation was added to adjust values, also appraiser used incorrectly small square footage)Buyer's Original 90LTV Loan: $432k ($480k w/ $48k down)Buyer's "Final" Loan Application: ????

(This may be incorrect, check with you lender)Commercial Lender.

I personally think it can be either, depending on what you buy and what you do with it in the future.Anyway, if my understanding of your question is incorrect I apologize as the rest of this post will be irrelevant.When it comes to a primary residence I always ask people one questions: are you PRIMARILY buying an investment or are you buying a home?  

This is simply factually incorrect.

my guy tells me, "i can mortgage 5-10, but they can't be homepath homes".95% of the banks say "we can't mortgage 5-10. in fact, no one can, so you have to get them cash"If a bank tells you that "no one can", that's just flat out incorrect.

This is probably due to ignorance instead of malice.In the spirit of learning, I have a bunch of questions:What would you do about the incorrect "Real Estate Condition Report?"

You may be right that the agent was just regurgitating incorrect info just so he would have something to talk about.

I've never been a fan of overlays but that's just my weird quirk.

Somehow he had a price that was $5K less than the contract price (and I still have no idea where the incorrect price came from).

I'll just add that those that do this would typically set aside some of the amount borrowed to make the minuimum payments on the CC's (in response to someone previously).Also, if you can demonstrate that the CC debt was used to acquire the property, the interest should be tax deductible (Dave T can comment on this, I've never heard him say anything incorrect about taxes).Obviously, it's a 180 degree different financial world than 4 years, ago, exponentially more difficult to get financing, particularly NOO HELOC's.If you can hold for 6 mths to one year, however, you might well be able to use a new appraisal, picking up the appreciation you forced into the deal, in your refinancing and do this with little or no net funds invested when the dust settles.So if the stars all align... jackpot.