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Most conventional lenders will not loan more than the purchase price, even if the property appraises for more than the purchase price. After the financial crisis, lenders want borrowers to have some cash equity in the property. It’s too easy for the borrower to walk away from the mortgage if he has no equity.
I am about to purchase a home for $50K. The appraisal is $75K. Can I get a loan for over the amount to pay off bills. I also have about $20K in land equity. Can I combine those two and work out a deal?
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