If the property I’m buying is worth more than I’m paying for it, can I use the additional value as a deposit towards the purchase?

Unfortunately, that is not the case when buying a new home. We use the lower of the appraised value or the sales price to determine the down payment of the home.

It's still a great benefit if you can purchase a home for less than the appraised value, but our investors don't allow us to use this "instant equity" when making our loan decision.