Purchasing a house based on its appraised value

[Travis Yenor]

Listening to a recent BP podcast, I learned of the concept of being able to purchase a home using the difference between the appraised value (assuming it’s greater than the sales price) and the sales price as the down payment for the house. So, pretty much the equity in the house is the down payment!

I have 2 questions.

1. Have you had success with this strategy?

2. If so, what sort of banks/credit unions are more likely to accept these terms for the loan?

Thanks for the help!