Home Buying in 33470>Question Details

Steve, Home Buyer in Hobe Sound, FL

what is fha appraisal is lower than loan amount?

Asked by Steve, Hobe Sound, FL Fri Mar 2, 2012

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Hi Steve,

The loan amount was what your lender qualified you for (amount you qualify due to your current income and expenses etc. that they calculate what mortgage payment you can comfortably repay monthly ) in conjunction with what you offered on the home you'd like to buy.

The FHA appraisal is an independent appraisal of the appraisal's opinion of the actual value of the property you are going to purchase, as of the day he/she appraises it. The bank usually will not loan more that the independent appraiser's opinion of the value of the property. So if you still want to purchase the property, you will have to come up with the difference from what the bank will lend you on it and what it costs, or re negotiate with the seller to lower the purchase price to the appraised value. Or, if you have an appraisal contingency, walk away.

Hope this helps.

Cindy
Web Reference: http://www.homesbuddy.com
0 votes Thank Flag Link Sat Mar 3, 2012
Steve, sorry to hear this is going on. The below answers are correct either the seller needs to drop the sales-price or the buyer needs to pay the difference, or a combination of both. lenders loan on the lower amount, appraised value or sale-price which ever is lower.

Only other option is to appeal the appraisal first with the appraiser, which means someone needs to provide the appraiser with accurate Comps (comparable homes) that have sold in less than a year and within 1 mile of the property in question. Last option is to appeal to the lender if the appraiser will not work with you. There are no guarantees in this process and it is time consuming. Most people work it out or terminate the transaction.

Good Luck,

Rob
0 votes Thank Flag Link Fri Mar 2, 2012
Consult with your loan officer as well; generally if the appraisal is lower, the lender will not lend; you can however try to renegotiate with the seller, add additional money down, or simply walk away...
0 votes Thank Flag Link Fri Mar 2, 2012
Then the lender will not fund the loan. The seller will need to lower the sale amount or someone needs to bring more funds to the closing. In other words, it is a big problem.
0 votes Thank Flag Link Fri Mar 2, 2012
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