Can buy home for 69,000 that is valued at 128,000 Will that help me with the loan proces

Assuming the house really is worth $128,000 - and you can buy it for $69,000 - that is awesome. But all the additional potential equity will mean nothing in helping towards your purchase loan. All you down payment requirements, loan-to-value calculations, and if you need mortgage insurance, will all be based off the purchase price. Sorry...

Banks are not in the real estate investment business, they are in the money business, and foreclosures cost money.. less than 2% of foreclosed homes net the lender without a loss, and If the home sells at auction for more than what's owed, the lender has to give you the difference, so they cannot profit from foreclosing. That being said, your loan will be based on the LOWER of the sale price or appraised value.. purchasing a home below market value is awesome, but it will have no effect on the lending process.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com