203k Refi Appraisal

[Richard kaplan]

Hello guys, I paid for a 203k appraisal, for my 203k refi (to fix roof ect) According to FHA HUD hand book the appraiser should have done 2 appraisals, an As is, and A subject to repairs. He did both prices but only on one appraisal, how can I get the proper product for what I purchased? What can I do?
Ref. HUD handbook Appraisers responsibilities

 

[Joe Flacco]

There can be two appraisals in one report. "Appraisal" is the act or process of developing an opinion of value. "Report" is any communication, written or oral, of an appraisal. What you have is one report with two appraisals.

Also, what happened is the bank purchased the appraisal report and you reimbursed the bank for their appraisal cost. So you did not really purchase anything.

 

[Richard kaplan]

There can be two appraisals in one report. "Appraisal" is the act or process of developing an opinion of value. "Report" is any communication, written or oral, of an appraisal. What you have is one report with two appraisals.

Also, what happened is the bank purchased the appraisal report and you reimbursed the bank for their appraisal cost. So you did not really purchase anything.

The bank os refusing to use the appraisals as is value, bc they state it is not an as is appraisal, even though it is what they ordered.. I need HUD documentation that they CAN use the as is value on the report, even though it is there error

 

[glenn walker]

Sound like you got a 203K Streamline where you can get up to $35,000 cash out and no your not going two get two separate appraisals just one that states the " as is value and "as repaired" value ( see below )

Standard vs Streamline 203(k) There are two types of 203k rehabilitation loans, the streamline and standard 203k, or construction 203k loan. The standard 203k loan is a more difficult process. While there is no cash limit, there is more paperwork required and you must hire a 203k consultant to oversea the project. 203k streamline mortgages allow for mostly cosmetic renovations and basic repairs. The maximum amount of cash you can receive with a streamline loan is $35,000. You can also do the work yourself and not hire a HUD contractor.

 

[Joe Flacco]

The bank os refusing to use the appraisals as is value, bc they state it is not an as is appraisal, even though it is what they ordered.. I need HUD documentation that they CAN use the as is value on the report, even though it is there error

Maybe they are saying that there is no support for the as-is appraisal in the report. The appraiser can't just include a as-is value without support for the value.

Your bank ordered the appraisal report so if it is deficient then it is their problem to fix. Nothing you can do about it really. Your bank needs to figure it out.

 

[Mr Rex]

The bank os refusing to use the appraisals as is value, bc they state it is not an as is appraisal, even though it is what they ordered.. I need HUD documentation that they CAN use the as is value on the report, even though it is there error

Is it that the property in "As Is" condition does not meet FHA minimum requirements?

 

[glenn walker]

The bank os refusing to use the appraisals as is value, bc they state it is not an as is appraisal, even though it is what they ordered.. I need HUD documentation that they CAN use the as is value on the report, even though it is there error

Normally if this is a 203K Streamline and you own the home ( not a purchase ) they use the "as is" value plus cost of improvement or repair your making. So what does the lender want to use ?

 

[Richard kaplan]

It stinks bc the max loan

Is it that the property in "As Is" condition does not meet FHA minimum requirements?

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

 

[glenn walker]

Is it that the property in "As Is" condition does not meet FHA minimum requirements?

MR REX This is a 203K repair loan- It won't meet minimum Property Standards until after the owner or purchaser has the work completed

 

[Richard kaplan]

Normally if this is a 203K Streamline and you own the home ( not a purchase ) they use the "as is" value plus cost of improvement or repair your making. So what does the lender want to use ?

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