Some lenders, in order to protect their investment are reducing the amount they are willing to lend on a property by 5%. The idea being that by reducing the loan value by 5% they are hedging their bet that the amount they loan will be less than the value of the home so that should the loan be defaulted upon they would be able to recover their loss easier.
You might need to bring additional funds in to close the deal. You can also talk to other lenders to see if you can find another lender that would be able to write the loan you need and an interest rate you can still afford.
I hope that helps and good luck with your transaction.
Tisza Major-Posner, Realtor, Keller Williams (909) 837-8922
Marie Richarz with Metrocities is a good person for you to contact. She is here in California and if anyone can pull this off she should be able to. Just as Irena said, I do not get any referral fee or commission by recommending her. I just know that she is an excellent loan officer.
Her email is:
Mary Beth-Oâ€™Keefe MaryBeth.OKeefe@NEMoves.com