Financing in Dawsonville>Question Details

Dawsongirl, Home Owner in Dawsonville, GA

looking to refinance a berm home in GA...Does anyone have suggestions for companies that do loans for berms?

Asked by Dawsongirl, Dawsonville, GA Fri Jun 10, 2011

I have applied recently and the appraiser could not find a comp so I was denied the laon even though I have perfect credit.

Help the community by answering this question:

Answers

5
I checked around with hard money lenders and they are not willing to finance this kind of property at this time because it is not marketable or cannot be re-sold easily. I remember way back when I had a person buying a bungalow in Atlanta and no others were around. The appraiser found "like" properties and we were able to close. As Rodney stated, you may have to get an appraiser that will dig a little deeper to find a property comparable to it (not necessarily like it). I'd recommend too, that you check out a different lender whose appraisers are not required to use the HVCC (Home Valuation Coded of Conduct) ruling. This ruling requires lenders to assign an appraisal to a management company who in turn assigns it to an appraiser who may not know what is a BERM property. If you can find a lender who doesn't use HVCC then you may have better luck in finding a comp for the property. Another option is to find an appraiser (appraiser association website) who can find the comps and then ask to have him added to your lender's appraisal list. Again, that lender cannot be using the HVCC system. Usually (and don't quote me on this), larger banks don't use HVCC. One last thought would be to contact the department of HUD (hud.gov) and find out if they are giving away grant money to pay for your home. I'd figure that Georgia would want to have more of these properties available to the public to cut down on energy costs. I think it's great that you are looking to buy this property and I wish you the best.
0 votes Thank Flag Link Fri Jun 10, 2011
The appraisal is a critical piece of every mortgage approval, both purchase and refinance. The underwriter cannot approve a mortgage applicaiton without a valid appraisal. The appraiser is required to use 3-4 comparable homes which have sold and closed in the last 6 months. They can go up to 12 months if nothing more recent exists. They typically also need to include 1-2 active listings and pending sales.

For a home to be comparable, it should be located close to the subject property (preferably in the same neighborhood), similar in size (can't compare 1,500 sq ft to 4,000 sq ft), similar in age (can't compare 2008 home to 1935 home), etc. It also must be a similar property type. This will be your biggest challenge. You have a unique property type and there are most likely no good comps for it.

Your only real option will probably be to try the mortgage compnay that currently services your mortgage. Other than that, your only hope might be to find a community bank who would do a portfolio loan.

Regards,
Rodney Mason
Sr Loan Officer / FHA 203K Renovation / HomePath Specialist
Prospect Mortgage
Atlanta, GA
(404) 591-2453
NMLS #151088
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in AL & GA
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Fri Jun 10, 2011
The appraisal is a critical piece of every mortgage approval, both purchase and refinance. The underwriter cannot approve a mortgage applicaiton without a valid appraisal. The appraiser is required to use 3-4 comparable homes which have sold and closed in the last 6 months. They can go up to 12 months if nothing more recent exists. They typically also need to include 1-2 active listings and pending sales.

For a home to be comparable, it should be located close to the subject property (preferably in the same neighborhood), similar in size (can't compare 1,500 sq ft to 4,000 sq ft), similar in age (can't compare 2008 home to 1935 home), etc. It also must be a similar property type. This will be your biggest challenge. You have a unique property type and there are most likely no good comps for it.

Your only real option will probably be to try the mortgage compnay that currently services your mortgage. Other than that, your only hope might be to find a community bank who would do a portfolio loan.

Regards,
Rodney Mason
Sr Loan Officer / FHA 203K Renovation / HomePath Specialist
Prospect Mortgage
Atlanta, GA
(404) 591-2453
NMLS #151088
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in AL & GA
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Fri Jun 10, 2011
On any mortgage transaction, refinance or purchase, the appraisal is a critical piece of the approval. Without a valid and acceptable appraisal, the underwriter is unable to approve the mortgage.

All appraisers are required to use 3-4 comps which have closed and sold in the last 6 months. Should those not be available, they may go back up to 12 months. The comps must be of similar property type and located in the same general area as the subject property, preferably in the same neighborhood. Since you have a unique property type, there are probably not going to be any similar homes that have sold.

Your best bet would probably be trying the mortgage company that currnetly services your mortgage. Since they did it the first time, they might be able to do the refinance. Of course, there would be no guarantee of that.. Other than that, you might be able to find a community bank somewhere willing to do a portfolio loan.

Regards,
Rodney Mason
Sr Loan Officer / FHA 203K Renovation / HomePath Specialist
Prospect Mortgage
Atlanta, GA
(404) 591-2453
NMLS #151088
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in AL & GA
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Fri Jun 10, 2011
It is common for a lack of comps these days especially for a home like yours, a good appraiser will use the most similar homes and adjust for differences. The loan officer should get a new appraisal instead of a denial, at this point you may want to look for anew bank or mortgage company and tell them up fornt of your problem so you dont face it again. good luck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Jun 10, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer