Trying to get a loan approved for $235,000 - we already own property and are hoping to use our equity in it as the downpayment for this loan. We are waiting for an appraisal of the land to determine the equity. Is equity based on how much the land is appraised at, MINUS what we owe on it?
ex: appraised at $100,000
owe <$82,000
equity =$18,000

this scenario makes sense to me - just wanting to know if this is how it works... thanks

Yes, in your example your equity is $18,000. But what do you mean about a down payment for a loan? A down payment is used for a purchase, not a loan.

I'm referring to a home loan - a 3.5% downpayment is required (this is an FHA loan) which would be $8,225. On a $235,000 loan - I was curious how the equity thing worked - trying to get a tentative idea how much we would have to put down out of pocket. Thanks for your quick response!

So you're talking about a down payment for the purchase of a home using an FHA loan. Ok. Good luck!