Can a higher (or lower) appraisal affect your required down payment?

Question

I plan to put 15% down for a condo (based on the purchase price). If the appraisal comes in 5% higher than the purchase price, does this have the same affect of having a 20% down payment?

Answer 1

It would not have an effect on your down payment at all. If it comes in higher then you know you already have equity built into the property....If it comes in lower depending on how much lower the lender may not do the loan...or you can negotiate a lower price to purchase the property for.

Answer 2

No the appraisal is only used to determine that the value you offer as a buyer is there.

Answer 3

It has no effect on your downpayment, which is a percentage of the selling price.  It only affects the Mortgage you are applying for.  If the appraisal comes in lower, you will not get the mortgage.