203k Refi Appraisal

[J Grant]

He DID supply two appraisals , as is and as completed , which consist of the two value opinions, in one report, which is typically how 203k appraisals are done .

IF lender wants you to bring 3k to the table per a formula they use including factoring in borrower existing debt, that is an UW and lender issue, not an appraisal issue.

 

[J Grant]

OP they ( the lender ) are using my existing debt, plus renovations, plus cost to close times .975 (which is called adjusted as is) making my max loan 165k

That is an UW/lender decision and does not mean the appraiser did not provide two appraisals. It means if this formula involves the as is MV as a part of % the bank's formula led to needing 3k cash to close , that is not the appraiser's fault that is the bank's lending UW ...the appraiser would only be at fault if they did a poorly supported MV opinion.

 

[J Grant]

If that is the case ALL 203K loans like this need to bring 2.5 percent cash to close?

No, that is your lender's underwriter and from what you posted in part has to do with existing debt or other factors ;which may be particular to your situation - every loan is different.

 

[Richard kaplan]

He DID supply two appraisals , as is and as completed , which consist of the two value opinions, in one report, which is typically how 203k appraisals are done .

IF lender wants you to bring 3k to the table per a formula they use including a debt ratio that is a lender issue, not an appraisal issue.

Doesn't

He DID supply two appraisals , as is and as completed , which consist of the two value opinions, in one report, which is typically how 203k appraisals are done .

IF lender wants you to bring 3k to the table per a formula they use including a debt ratio that is a lender issue, not an appraisal issue.

The lender wants me to bring 3k because they will not accept his As is value bc it was not done on a separate appraisal, and sadly the FHA/HUD handbook states it should have been done separately

 

[J Grant]

If he provided an AS IS value as well as a second as repaired or remodeled value, he DID do two appraisals, they do not have to be two "separate" appraisal reports, in fact most lenders order them as two different value opinions ( each value opinion constitutes an "appraisal", the standard format for 203k appraisals is a one report with two value opinions in it format.

 

[Richard kaplan]

If he provided an AS IS value as well as a second as repaired or remodeled value, he DID do two appraisals, they do not have to be two "separate" appraisal reports, in fact most lenders order them as two different value opinions ( each value opinion constitutes an "appraisal", the standard format for 203k appraisals is a one report with two value opinions in it format.

I agree, I am looking for the FHA/HUD documention showing that is true, bc every thing in the handbook says it is not. I think it is common sense, but clearly UW is not that intelligent today.. why would I pay for a whole new appraisal if the one I have has both values.. I just need the documents that states 203K appraisal can be done in one appraisal with both values...

 

[glenn walker]

It stinks bc the max loan


I live in the home amd it has no issues FHA min requirements.
UW uses a particular calculator to get the max loan amount, and bc he did not supply two appraisals they are using my existing debt, plus renovations, plus cost to close times .975 (which is called adjusted as is) making my max loan 165k
My appraisal value post repairs is 219k, and my as is value is 200k according to my FHA appraisal, so the bank wants me to bring 3k to the table even though I have 50k in equity.. Makes no sense

OK- now we are talking about underwriting situation and not an-appraisal issue - And since you are paying off existing debt and borrowing for renovations the ratio used for your final loan to value is $3K short. So forget your appraisal it's not going to change anything because your final loan amount is based on many factors besides the appraised value. In theory you could have a $100,000 equity and only be offered a 50% LTV because of credit, total debt , child support , who knows , each file is taken on a case by case basis. Unfortunately for you underwriting Guidelines are just that Guidelines- and each application is individually approved or disapproved on total ability to repay the loan. I included the FHA -HOC which covers Florida - Call them on Monday and ask to speak with someone in the Underwriting department .

Need to Contact FHA Center For Your State :

• Email: answers@HUD.gov
• Phone: (800) CALL FHA
  8 a.m. to 8 p.m. ET
• National Servicing Center

 

[Richard kaplan]

OK- now we are talking about underwriting situation and not an-appraisal issue -And since you are paying of existing debt and borrowing for renovations the ratio used for your final loan to value is $3K short. So forget your appraisal it's not going to change anything because your final loan amount is based on many factors besides the appraised value. In theory you could have a $100,000 equity and only be offered a 50% LTV because of credit, total debt , child support , who knows , each file is taken on a case by case basis and I think you assume because you have $50K equity you will get X-amount of dollars - maybe - Maybe not- Personally I would scrape up $3K or ask them to lower my loan by $3K ?

According to HUD 4240.4
(3-2.F.) section G
appraisers responsibilities
Preform 2 appraisals
1) An as is Appraisal and
2) An after rehab appraisal.
He did not do his job correctly bc I only have 1 of those, if he did I would have zero problems... My question was what to do about his incomplete work.. if you say he doesn't need to do what the FHA requires please provide Documents. Sorry for being a pain, if not is my only option haveing the lender order a whole new appraisal?

 

[J Grant]

According to HUD 4240.4
(3-2.F.) section G
appraisers responsibilities
Preform 2 appraisals
1) An as is Appraisal and
2) An after rehab appraisal.
He did not do his job correctly bc I only have 1 of those, if he did I would have zero problems... My question was what to do about his incomplete work.. if you say he doesn't need to do what the FHA requires please provide Documents. Sorry for being a pain, if not is my only option haveing the lender order a whole new appraisal?

You don't get it, even though posters explained it.. he DID perform 2 appraisals, if he provided a 1) "As IS" value opinion and a 2) " as completed" ( after) rehab value opinion

Look at the appraisal report, are there 2 different value opinions in it, or just one ?

 

[Richard kaplan]

You don't get it, even though posters explained it.. he DID perform 2 appraisals, if he provided a 1) "As IS" value opinion and a 2) " as completed" ( after) rehab value opinion

Look at the appraisal report, are there 2 different value opinions in it, or just one ?

Oh my word, YES, but what you don't get is the handbook clearly states they need to be two separate reports.. I understand that all lenders accept this normally, but according to the handbook it is two SEPARATE reports..

I do get it, it clearly states in section 2-2 that it requires 2 separate appraisals for the 203k loan, I guess I am just an idiot bc the handbook is so stupid, I mean how in Gods name does the handbook state clear as day, it requires 2 separate appraisals, and EVERYONE is saying I am wrong? how do I argue with the rules.