I am often asked by buyers, "Why does the seller care about my down payment amount? As long as I am satisfying the building's down payment requirement, and the bank has approved the loan, aren't they getting their money at the closing table whether I 'put down' 20%, 50% or 100%?"
It is a very reasonable question. Unfortunately, the answer is more complicated than you might think. 100% of the purchase price will certainly be delivered at the closing whether the bank is providing 8% or 80% of the funds. However, the seller being "made whole" is only one small piece of the puzzle and doesn't take into account two major factors in any purchase - risk and competition.