2nd rental and appraisal came back 10k higher...mortgage ?

Question

Appraisal is at 97k. Bought it for 87k so we’ve got 10k in equity. Bank still wants 15% cash at closing from purchase price, so around 14k.

Is that normal? I figured that with 10k in equity we wouldn’t have to bring that much money. Only a few thousand bucks to get to 15% equity.

Thoughts and input is appreciated!

Wayne Brooks · Answer

No....the lender lends 85% of purchase price, or appraisal, whichever is less. Not only do they want equity but more importantly they want You to have that much invested....less likely you just walk away. These are Fannie/Freddie requirements, not your individuallender.

2nd rental and appraisal came back 10k higher...mortgage ?

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