We tried to do the purchase price plus renovation. We have perfect credit, are putting 20% down, and were approved for more than we intend to spend. We had the inspection done before making an offer and also met wtih an architect to make sure what we wanted to do could be done and he drew up plans. Everything was in place and mvoing along but the appraisal was way off. He did it based on current and not future value as he was supposed to. Because we have to close by April 27th, the seller is a bank, there is not time for another appraisal according to our lender. We are infuriated. I can't sleep because of it and have a constant tension headache. Our lender said that after we close, we could do a renovation loan. She said the loan amount would be up to 95% but paying pmi, of whichever is lower: (a) after improved value or (b) acquisition which is total liens plus total cost of renovations. We don't know what this means and she won't go into more detail until the time comes. I can tell you that the purchase price is $207K and the cost of our renovations is $165,092. The appraiser came back with a value of $207K, the EXACT amount of the purchase price!!! That doesn't make sense! I even emailed the appraiser and asked him if he based it on current value or future market value. He replied "Current". I showed this to the lender and she said she would fight it but it was likely we woldn't close then. She also said that he would have to have been off by over $100K. The contractor and architect and our realtor believe it is wa off too. If we don't go through the same lender for the renovation loan, Wells Fargo, maybe we'll go through a broker. No wonder the housing market is the way it is. A person with a two week certificate that can't do his job blew this for us. I'm so sick of people being lazy and not doing their jobs.