Hi Albert,
Some lenders lend on purchase price and not valuation, so if you could get the lender to lend to you at valuation price of 100k yes, that is if it values up to that and is a genuine discount, but otherwise they will lend you 85% of the purchase price of 80k.
I believe that is right Charles. I did it with a property in Scotland, it was valued at 28k...don?t laugh, that is correct, but I was buying for 21k, so the bank actually lent to me the 21k, 80% of valuation.
So in effect I got the property for no deposit....I wished I could do that more often...
Cheers
Ryan