Here is the situation
House listed for 550k
We have approval for the amount of 548k loan as this is the non conforming loan limit. Loan rep says we can buy up to 650k house if we want, we just have to come up with the difference between the 548k loan and the sales price.
So back to the house – we want to offer 630k and we’re putting down 82k (bc we have to) and saying we’ll cover an 80k appraisal gap up to 630k.
From my understanding – my down payment of 82k would cover the down payment and/or appraisal gap to meet the difference of the 548k loan and sales price so it really doesn’t actually matter what the house appraises for.
My realtor refuses to put the offer in bc she says that the appraisal gap is seperate from the down payment and we’d have to come to the table at closing with 160k.