Home Selling in 46327>Question Details

Jefeuracan2, Home Seller in 46327

Selling home w/ in laws unit. Lender denied the loan, FHA comps guidelines. Appraisal certifies $ over loan & meets FHA guidelines. What can I do?

Asked by Jefeuracan2, 46327 Fri Jun 17, 2011

next The loan (FHA) was denied due to not enough comps in the area according to the lender and not meeting FHA guidelines. Buyers were fully approved for the loan amount. The appraisal which came in above the asking price, certifies that they meet Freddie Mac, Fannie Mae and FHA guidelines. Does this mean that I am out of luck and won't be able to sell even if going to other lenders? Any experiences out there when there are no comps found? I can not be the first lucky one?

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The borrowers can go to a different lender and get financing. Just because one lender does not accept the appraisal findings, does not mean another one will not. FHA appraisals are easily transferred to a different lender so all they have to do is reapply elsewhere. If as you say, the appraisal came in at or above value and is indeed an FHA appraisal, they should be able to get financing at another source without such strict underwriting overlays. It sounds as if they were the victims of an appraisal desk review, and it happens sometimes. Just don't give up on the borrowers and make sure your agent follows up to make sure they know they still have options.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri Jun 17, 2011
The slow market has made in-law situations harder to comp since less of them are on the market, many families now have other family members and units living with them and sharing expenses so many in-law homes are not on the market. s nothing to comp on! But then you say an appraisal came in above asking price, and there needed to be comps for the appraiser to make their number! So what gives?
0 votes Thank Flag Link Fri Jun 17, 2011
First: does the property meet Hammond's zoning requirement or is it legal non-conforming use? Second: Will the subject appraise out as a SFR- non related living? There is a way to achieve this. FHA guidelines are what they are but various lenders tend to defer to there own criteria for purposes of reselling the loan package. For right now you are stuck with the current appraisal for 6 months before the case number can be cancelled and another appraisal ordered. My brokerage is affiliated with a Mortgage Banker in Crown Point who may be able to assit you in this matter. Give me a call @ 219-662-7147 and let's see what the best options are currently available to you with what you have to work with.
0 votes Thank Flag Link Fri Jun 17, 2011
Ive run across this before, each lender is different as they have whats called an overlay....contact a different lender immediately ( it wont hurt fico to shop different lenders). also your loan officer and underwriter should be trying to overcome this and get an exception....
0 votes Thank Flag Link Fri Jun 17, 2011
If there are no comps with the in-law suite, the appraiser can take out the value of the in-law suite and call it a den.

It's hard to tell because we can't see the layout to say that this will work.

Also, if you lack comps for in-law suites, it may still be hard for someone to accept.

Have the buyer start calling a mortgage broker because they can contact a variety of lenders.
Web Reference: http://fredglick.com
0 votes Thank Flag Link Fri Jun 17, 2011
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