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Private Lending & Conventional Mortgage Advice

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Joshua Durrin
  • Real Estate Broker
  • Alameda, CA
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105
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30% Down or 30% Equity?

Joshua Durrin
  • Real Estate Broker
  • Alameda, CA
Posted Nov 10 2014, 11:16

Hi,

I'm curious. With capturing deals with built in equity (let's just stick with the 70% ARV for now, but assume also that the house is move-in ready... as such 30% of current market value), do I need to put money down (say 3.5% for an FHA loan) when I have 30% equity built into my purchase price?

Assuming the appraisal comes back with a value much higher than I'm paying for it, is that spread enough to waive the downpayment requirement?

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