Hello, all. I wasn't sure where to post this so I put it here...the loan I'm dealing with is similar to this category. I am a first-time home-buyer applying for a SONY MA loan (State of New York Mortgage Assistance loan) in New York. For those who aren't familiar with it, it's a low-interest state-subsidized loan offered to buyers who fit certain financial criteria. Without going into details, my wife and I meet the criteria.
We are in contract on a home that needs a little TLC. Basically, the kitchen needs to be redone (It's outdated), one of the bathrooms is a mess (But it works) and the house smells like dog. And, of course, it could use some paint. All of this stuff is basically cosmetic.
Everything works in the house. The roof has good life to it, the heating system is about a year old, the electric works, plumbing works, all of the windows are present and the siding is complete. The outside of the house has some bushes that need to be trimmed. Other than that, it's a decent house.
My issue is this: We are getting the SONY MA loan through M&T Bank. The appraiser they got is listing the house in "Fair" condition. Our M&T rep has told us that this is not good. "Fair" usually means that there are boards on the windows, the roof leaks, the siding is incomplete...basically, there's something majorly wrong that would prevent one from living in the house. However, this does not appear to be the case. Like I said, everything is cosmetic in this house. In addition, after speaking with the SONY MA people directly, they said that the only criteria they have for the condition of the property is that it must be "livable"....whatever that means. Nowhere could I find any hard criteria for the property conditions required for this loan.
I guess the appraiser is communicating with the underwriter via e-mail while the appraisal is being written. Whatever he sent to the underwriter seemed to have focused on the dog smell and the state of the paint in the house. He may have even included a note about the hardwood floors (they need a little TLC but, they are perfectly functional and intact). I got this info from my realtor and the M&T rep. They've all been communicating about the property, apparently. My realtor even got a hold of the appraiser somehow and basically got the impression that he was put-off by the cosmetic issues with the house.
What I would like to know is, is this normal???? We're freaking out because we don't want to lose this house because of cosmetic issues that rubbed this guy the wrong way. We haven't gotten the full appraisal yet (hopefully that will come tomorrow) but, this just seems ridiculous to me. Is there any way around this or are we basically screwed if this guy doesn't smarten up? Our bank rep mentioned something about challenging the appraisal. Is this a pain the butt process or is that something that can easily be taken care of? Thanks for any input.
We are in contract on a home that needs a little TLC. Basically, the kitchen needs to be redone (It's outdated), one of the bathrooms is a mess (But it works) and the house smells like dog. And, of course, it could use some paint. All of this stuff is basically cosmetic.
Everything works in the house. The roof has good life to it, the heating system is about a year old, the electric works, plumbing works, all of the windows are present and the siding is complete. The outside of the house has some bushes that need to be trimmed. Other than that, it's a decent house.
My issue is this: We are getting the SONY MA loan through M&T Bank. The appraiser they got is listing the house in "Fair" condition. Our M&T rep has told us that this is not good. "Fair" usually means that there are boards on the windows, the roof leaks, the siding is incomplete...basically, there's something majorly wrong that would prevent one from living in the house. However, this does not appear to be the case. Like I said, everything is cosmetic in this house. In addition, after speaking with the SONY MA people directly, they said that the only criteria they have for the condition of the property is that it must be "livable"....whatever that means. Nowhere could I find any hard criteria for the property conditions required for this loan.
I guess the appraiser is communicating with the underwriter via e-mail while the appraisal is being written. Whatever he sent to the underwriter seemed to have focused on the dog smell and the state of the paint in the house. He may have even included a note about the hardwood floors (they need a little TLC but, they are perfectly functional and intact). I got this info from my realtor and the M&T rep. They've all been communicating about the property, apparently. My realtor even got a hold of the appraiser somehow and basically got the impression that he was put-off by the cosmetic issues with the house.
What I would like to know is, is this normal???? We're freaking out because we don't want to lose this house because of cosmetic issues that rubbed this guy the wrong way. We haven't gotten the full appraisal yet (hopefully that will come tomorrow) but, this just seems ridiculous to me. Is there any way around this or are we basically screwed if this guy doesn't smarten up? Our bank rep mentioned something about challenging the appraisal. Is this a pain the butt process or is that something that can easily be taken care of? Thanks for any input.