Home Buying in Riverside>Question Details

Nikki, Home Buyer in 92879

Appraisal comes in lower

Asked by Nikki, 92879 Thu Aug 1, 2013

Can I borrow cash from family or friend to pay a difference? I thought that money needs to sit in the bank for 90 days or it does not apply to this situation. Please advice. Thank you

Help the community by answering this question:


Gift from Family is allowed.

You might also want to further review the appraisal report for any errors or omissions

Remember that an appraisal is based upon data. So verify the key facts in the appraisal:

Is the square footage of the subject property correct? )
Is the lot size correct?
Did the appraiser note the level of improvements? Remember this is a macro-approach, the appraiser does not do a line by line cost assessment of improvements.
Appraisers must use the most recent and most similar sales in analyzing the value of the subject property. So look to recent sales in your neighborhood:
Was there a more similar sale not utilized?
Was there a more recent sale not utilized?
Was there a sale closer in proximity that should have been considered?

Remember – appraisers cannot overlook sales in the immediate neighborhood that have like-features in lieu of properties that are farther away and are more dissimilar. An appraiser that did this would then not be acceptable to the lender.

How do you decide what is a similar sale? The appraisers we work with use our guidelines in determining comparables. They first try to stay within these guidelines and can only exceed them when such sales do not exist:

Homes of similar real AND effective age.
Home of similar size AND relatively similar bedroom/bath count.
Home of similar lot UTILITY (different than total lot size).
Home of similar condition AND quality.
While appraisers make adjustments for minor differences, a significant adjustment would mean the properties were not that similar – therefore they can’t overlook a property of similar condition to one that would require a large condition adjustment to make it. If you are going to offer alternative sales for the appraiser to look at, try to follow these guidelines as well.

Look at the adjustments made for the comparables used in the report. Important features include:
Location – including external influences, school districts, etc
Do the adjustments seem reflective of these critical elements?
Did the appraiser explain how the adjustments were arrived at?
1 vote Thank Flag Link Thu Aug 1, 2013
Yes quite a problem. Happens all of the time.

The problem is that you posted this question 2 weeks ago so I really need more information to help you and you probably have resolved this.

If I can be of help please call me at


Rich Littlefield
NMLS 287206
0 votes Thank Flag Link Tue Aug 20, 2013
You can get a gift from a relative for the down payment most likely that does not need to be seasoned.
0 votes Thank Flag Link Fri Aug 16, 2013
Yep, you can gift but the timeline on funds should still apply to the giftor. Ask your lender if the 90 days applies to the giftor. If so, all monies will need to be documented the same as it applies to you.
0 votes Thank Flag Link Fri Aug 16, 2013
Thanks Lon,

That was just regarding the appraisal, which we do not handle.

You should see how far we go on our loans.


Did I get a VOTE?
0 votes Thank Flag Link Fri Aug 2, 2013
Wow, Thierry really went out of his way to give you a great detailed answer to your question.
0 votes Thank Flag Link Fri Aug 2, 2013
Thank you all for your advices. The appraisal comes in lower seems to happen a lot in city of riverside? This is a flipped home, newer build, gated community. The listing agent said she belives the home appraised $20k less than our (soon to be) offer.
0 votes Thank Flag Link Thu Aug 1, 2013
If it is FHA you can use gift funds,you will need what is called a "gift letter".
This question should be asked to the lender you are working with.

Jory Blake
Web Reference: http://www.JoryBlake.com
0 votes Thank Flag Link Thu Aug 1, 2013
HI Nikki,

It should not be problem. You should get a letter from the person/family member that is giving you the money, saying that it is a gift and show them how you are related...

Nowadays banks are getting annoying. They want to know everything that is going on your bank account.

I had a client, a server, that deposited cash into his bank account every month. The bank wanted to know where the money came from, had to get the employer involved a little. They were saying that it could have criminal money....

Anyway, show the bank where the money is coming from (the family member bank's statement debit of the amount, your bank statement credit with the same amount, a letter from the person giving you the money and you should be fine.

BUT above all, GET A CHECK not cash!!! The bank may wonder and does not like cash!

Hope that helped!
0 votes Thank Flag Link Thu Aug 1, 2013
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