Posted on: 22nd Jul, 2009 04:30 pm
If i am purchasing a home and the appraisal is higher than the sales price, will it affect the ratio. can it lower the down payment required... or is it strictly the ratio of loan to sales price ?
The bank will use the lower of the two amounts. So, it is strictly the loan to sales price as you put it....unless the home appraises for less than your purchase price. Then the bank will use the amount that it appraised for.