Expert: Ray Beggs - 6/16/2006

Question
if a seller is asking 39000.00 for his house, and a third party independent appraiser said it was worth 43000.00. can i get the loan for the higher amount for furniture and things of that nature?

Answer
Hi Laura,

Thanks for the question. Not usually, unless you get a loan that allows for that. If it does, you'll pay extra interest rate and sometimes extra fees. Most loans will only be based off the sales price. Anyway, if you're going to 100% financing you'd be getting an 80/20 loan and you can always up the 2nd (the 20% loan) later.

Hope this helps.

Ray

P.S. Where on earth can you get a house for $39,000? ;-)