Posted by James (FL) on July 08, 2003 at 16:57:33:
I am assuming that you are buying a home under market value. I believe what this means in your case is that the bank is willing to finance 100% of what your purchase price is, assuming that your purchase price is less than 75% Loan To Value (LTV) of the actual value of the home.
Home appraises for $100K
Your purchase price $75K
Your loan $75K.
100% purchase price
If this is not your situation then I apologize for wasting everyone’s time. I had to assume due to a lack of details =)