That's very odd. Usually the appraisers will go a little further out of the area or make other adjustments as to size or type. Anything from 12 months ago would be too old. You would need comps no older than 6 months.

We are going from a conventional to an FHA-that's what I meant when I said refinancing for a FHA loan-so we do need the appraisal. We hve already had an appraiser in and the most recent comps came from 7/08-when the paperwork went into underwriting we were told these findings weren't acceptable. Do we go with another mortgage broker and try again? Thanks for your answers so far!!!

What do you mean refinancing "for" an FHA loan? Do you currently have an FHA loan and you want to lower the rate? If that is the case, no comps are necessary. Do you have a mortgage now? Who is the lender? Again, if you are not taking money out, maybe you don't need an appraisal. If you are going from a conventional loan to FHA, then you do need an appraisal.

Ruth Bonapace
Bank of America Home Loans

Gail is correct; if there are no current "comps" in your neighborhood an appraiser will simply go to another neighborhood that is similar to yours and use those comps. If the "other" neighborhood is of overall lesser or more value due to location, lot sizes, amenities, etc. the appraiser will make adjustments for that.
We have had problems lately with appraisers using all short-sale or REO (foreclosed homes now owned by a lender) comps and ignoring the arms-length sales. This is having a very negative effect on appraisals and has killed many sales.

Who is saying there are no comparable sales? The bank? The loan officer?

1. Ask a Realtor to check Realtor sales on the Multiple LIsting Service
2. You may have to go down to the County offices to check title recordings.

Bottom line, sales can be adjusted to become "comparable" and it is not possible that there were no sales within a one year period in your zip code/school district. I think you are just inquiring of the wrong people.