Home Buying in 94025>Question Details

Heidi, Home Buyer in 94025

how to get a loan on a home appraised at below average condition?

Asked by Heidi, 94025 Wed Feb 17, 2010

Help the community by answering this question:

Answers

7
This is an easy question. If you are working with limited down, do an FHA 203(k). If you are working with a large down payment there are a couple resources for remodel/rehab financing that I know of that are quite easy to attain.

If you want more information e-mail me at grichards@theloansource.com or call at 925-335-6074 and I will give you the information.
0 votes Thank Flag Link Sat Feb 27, 2010
I agree with John: I don't know of any conventional lenders that would fund this deal (at least until the property is cured [ie brought up to average condition as John explained earlier]).

Also, the reason I initially asked, whether you're purchasing an investment (rental/flip) or residence, is that you could do this deal with a hard money (for the rehab costs) first, and seller carry-back second--provided you're buying an investment property. Afterwards, you could refinance and rent, or flip to cash out the hard money and seller financing.
0 votes Thank Flag Link Thu Feb 18, 2010
Hello Heidi, If you are talking about refinancing your home, it might be very difficult. If you are talking about the home you are in contract to purchase you have a few options.

The first thing you should try to do is renegotiate with the seller(s). It could very well be the home and the area, not your loan that is the problem.

The second thing you can do is try to get another appraisal. The last thing you could try doing is to work with another lender, and start all over.
If I were you, I'd try to negotiate with the seller, if they said no, then I would tell them that you are willing to pay for another appraisal or another lender, but if the home still does not appraise, they will agree to sell if for less.

If you really like the home, your last option would be to make up the difference between the purchase price and the appraised price.

If you have any other questions, feel free to call or email me.

Regards,

Tap
Cashin Company
http://www.DavidTapper.com
http://www.TeamTapper.com
Redt4u@aol.com
650-403-6252
0 votes Thank Flag Link Wed Feb 17, 2010
Hi Heidi,
Try to nrgotiate the sales price to match the appraised value.
0 votes Thank Flag Link Wed Feb 17, 2010
Hi Heidi,

I assume you are talking about an FHA loan, as the criteria for these loans are more stringent, and depending upon what needs to be fixed, you may or may not be able to get the loan.

If it is a purchase, you can put more money down to get conventional financing, and in this case the criteria are less stringent.

If you can provide more specifics, I may be able to give you a better answer.
0 votes Thank Flag Link Wed Feb 17, 2010
Heidi,

First of all, what was the price of the offer submitted? Were you approved at this amount?

Many times, especially with bank owned properties in poor condition, this occur's.

As long as the comp's can substantiate the price you should be okay. Most appraiser's look at the comp's plus the condtion of the property when submitting their appraisals. Any upgrades or amentities may be taken into consideration too.

I'm sure your agent comp'd the area before submitting an offer. Do they feel it will be a problem with your loan?
0 votes Thank Flag Link Wed Feb 17, 2010
Will this be your residence or a rental?
0 votes Thank Flag Link Wed Feb 17, 2010
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