We are under contract for a house in desirable West Asheville (quite street, right off Haywood Rd) and our

Asked by Holly Ann, Asheville, NC Mon Jun 15, 2009

house appraised above the sells price by 3,000. Just heard from our lender and b/c of the new market addendum, they say we may have to pay additional down payment. Since our neighborhood is not entirely in sync with Buncombe County as a whole this seems unfair and unreasonable. Can we challenge this? If so, how? Desperately seeking a solution. Thanks

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Rowena Patton, Agent, Asheville, NC
Wed Aug 26, 2009
Hi Holly

did you finally find a solution? I hope you are settled in!
0 votes
Greg, Both Buyer And Seller, North Carolina
Sat Jul 25, 2009
LOL @ Desirable West Asheville! First time I have ever heard that!
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Jeff Link, , Asheville, NC
Tue Jul 14, 2009
Did the appraiser put on the appraisal that the house is in a declining market? That could be a reason.
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Luke Allison, , Asheville, NC
Mon Jun 15, 2009
Holly Ann-
You confused me a bit by your scenario. Did you mean that the purchase price is $3,000 MORE than what the house appraised for? Mortgages are always going to be based off of the appraisal value of the home or the purchase price, which ever is less. You can agree to buy any home for any price, but the lender is only going to lend on what the house is worth per the appraisal. If you agreed to buy a home for $3,000 more than the home was valued at, that $3,000 would have to come out of your pocket and would not be able to be worked into the loan itself.

Your best route would be to go back to the seller and try and renegotiate the sales price to equal it to the appraisal value - if I am understanding the situation correctly.

You are welcome to call me if you have any questions about financing. I am right around the corner from you.

Luke Allison
Bank of America Home Loans
0 votes
Glenda Marks, , Charlotte, NC
Mon Jun 15, 2009
This changes the loan to value ratio. So if the house was under contract for 100K and you were on an 80/20 conventional/uninsured mortgage, you would have to put down 20K to make the ratio work. If the house appraised at 103K and you are on an 80/20 mortgage, your downpayment would go up by $600.

If you are getting an FHA loan, consult with your local FHA department. The current loan limits in your county are:

BUNCOMBE Single family: $303,750; Duplex $388,850; Triplex $470,000; Fourplex $584,150

And if you are putting down 3% or 5%, you can figure that out pretty easily. If your appraisal falls above these levels, you may have to put more down in downpayment.

Pretty much, right now, the lender is making the rules....

Hope this helps.

Glenda Marks, Owner/Broker
Marks Real Estate & Auction Co.
Ph: 704-817-8064
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