Updated almost 4 years ago on .
What all is a bank looking for when taking out a equity loan ?
What does a bank normally require when taking an equity loan on a flip and hold? I was told they need more than just an appraisal. I was told that if I bought a house for just say 25000 and I put 20000 in it then the bank will say that is the value (45000) and only give me 80% on the loan. This makes no sense to me. I thought banks normally give somewhere around 80% to total value. So while iam all in 45000 mabe the house Appraises at 70000 then 80% would be 56000 .