SONYMA and FNMA appraisal ?

[annmarie37]

Hello,
I'm trying to buy a property under a state of NY first time buyer program called Remodel New York. After 3 months of due diligence and almost full time work on my part to close, the final application was rejected by the SONYMA underwriters.

The application calls for the inclusion of appraisal form Fannie Mae 1025 (this is a two-family home). The appraiser did the form but included NO comps (the form requires 3, in a 1-mile radius, w/in 6 months), because he couldn't find any. (This is a suburban area, highly desirable, and properties just don't come on the market very often-- much less homes w/an apt. If the radius could be increased even a little, there would be plenty, or if the 6 mos could be upped to one year.)

I read sections 402 and 403 of the Fannie Mae guidelines and it seems as though they do provide flexibility for certain cases. Does anyone have experience on how to make "non-comparable comps" more palatable to underwriters, or any ideas? I hate to lose this property... it is a GREAT opportunity for my first home.

Thanks,
Annie

 

[Marcia Langley]

Annie,

There is something very odd about your story.

I don't know anything about your NY program or about Sonnyma, but I do know about Fannie Mae guidelines.

There may be something extra in the other programs that have a rigid limit on age and distance.

But you are right about Fannie Mae, as a stand alone guideline providing some flexibility in comp selection.

From the Fannie Mae point of view, it does not make any sense at all that an appraiser would turn in an assignment with no comps.

The rigid restrictions are either from one of those other programs or from the specific lender you are working with.

Sorry I couldn't be more help.

 

[panappr]

What NO Comps? I wish it were that easy. First of all the report was done on a FNMA 1025 form, and did the appraiser provide rental data developing a GRM (gross rent multiplier)?

 

[The Warrior Monk]

Hello,
The application calls for the inclusion of appraisal form Fannie Mae 1025 (this is a two-family home). The appraiser did the form but included NO comps (the form requires 3, in a 1-mile radius, w/in 6 months), because he couldn't find any. (This is a suburban area, highly desirable, and properties just don't come on the market very often-- much less homes w/an apt. If the radius could be increased even a little, there would be plenty, or if the 6 mos could be upped to one year.)

The obvious question is how did the appraiser arrive at a value conclusion with no comps?

 

[Marcia Langley]

I heard one appraiser complaining that his client made it an assignment condition that he would only accept appraisals with comps within a certain proximity and time frame. That rigidity was due to that specific lender, not any normal or nationally accepted guidelines.

Barring that, the appraiser could not even opine a value. It was a "stop work" sort of condition.

I can't imagine a real lender with that sort of rule. They must not want to be making loans at all.

 

[Mike Kennedy]

Hello,
I'm trying to buy a property under a state of NY first time buyer program called Remodel New York. After 3 months of due diligence and almost full time work on my part to close, the final application was rejected by the SONYMA underwriters.

The application calls for the inclusion of appraisal form Fannie Mae 1025 (this is a two-family home). The appraiser did the form but included NO comps (the form requires 3, in a 1-mile radius, w/in 6 months), because he couldn't find any. (This is a suburban area, highly desirable, and properties just don't come on the market very often-- much less homes w/an apt. If the radius could be increased even a little, there would be plenty, or if the 6 mos could be upped to one year.)

I read sections 402 and 403 of the Fannie Mae guidelines and it seems as though they do provide flexibility for certain cases. Does anyone have experience on how to make "non-comparable comps" more palatable to underwriters, or any ideas? I hate to lose this property... it is a GREAT opportunity for my first home.

Thanks,
Annie

After Davids' question, a few others:

1. are you relying upon verbal information from lender or did you get a copy of the appraisal report submitted?

2. though the application required 1025 - due to the bold above - is it possible you were told the appraiser found no TWO-FAMILY comparables and based on the market data available determined the Highest and Best Use of the property was as a Single Family, owner-occupied, residence and appraised it as such.

3. If so, is it possible that the loan app was declined as the market does not support rental income for the prospective purchase?

4. if the report is in fact as 1025: was the appraiser LOCAL or out of area?

5. if you either HAVE a copy of the report or are able to phone and solicit same - what are the FIRST TWO numbers in the appraisers license number?

6. how many Appraisers signed the appraisal report? If more than 1, get the first two numbers of the appraiser signing on the right and verify if that appraiser checked of the box below indicating DID or DID NOT Inspect.

Lastly,

PROPERTY LOCATION?