Financing in Denver>Question Details

hal2000g, Home Buyer in 32202

Sales price greater than appraisal by $5. Can Home Path Renovation loan renovation of $5,000 be considered to cover difference?

Asked by hal2000g, 32202 Sun Aug 18, 2013

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HomePath loans are only used on HomePath homes (owned by FNMA & already approved for for HomePath financing). You wouldn't even have had an appraisal on a HomePath home if you were using HomePath financing. In a conventional or FHA loan, appraisals are to protect you, the buyer. You need to consult with your Realtor to renegotiate your contract price, or agree to bring the difference in cash (this likely is not ONLY the $5k but also the difference in the LTV now). Good luck!
1 vote Thank Flag Link Sun Aug 18, 2013
Thank you Nicci. The loan is actually a HomePath Renovation loan which requires an appraisal. The place has already been renovated but would not change to a regular HomePath.
Flag Sun Aug 18, 2013
If the apprasial came in low, I suggest you think about supplying a copy of that appraisal to the listing agent. Based on that, ask if they would be willing to lower the purchase price so that the math works out where you can still purchase the property. I just had one of these and it worked out for the buyer. Denise Olson, PrimeLending
0 votes Thank Flag Link Fri Sep 27, 2013
The answer is no. The Ppraisal came in short by $5,000 so this means that you now need an additional $5,000 than whatever you needed before to make the deal happen. If you now add an additional $5,000 for repairs, that's a total of $10,000 you'll need for the transaction.

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Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
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0 votes Thank Flag Link Sun Aug 18, 2013
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