Yes - and through a double mechanism. When the buyer injects extra cash to bridge the appraisal gap, their post-closing liquidity drops. If that pushes their liquid reserves below the board's strict 12-24 month minimum, the board will reject the application even though the buyer covered the gap. Always verify that buyers have excess cash beyond the gap amount to satisfy both the lender and the board.
From the seller playbook: Appraisal Gap Capacity Analysis
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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