Sounds similar to what I did with my truck. I used a Four Seasons 74777, though.
All of the heater valves I've come across will allow some seepage past the valve itself. I suspect this is intentional, so as force all of the coolant to stay at a uniform mixture. For bypassing the heater core, the seepage isn't enough to really affect discharge air temperatures coming out of the HVAC housing.
However, for fully shutting off coolant flow, such as with my HAI setup, these valves are not quite adequate.
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