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FHA Appraisal Story – Happy Ending

FHA Appraisal Story: We have an FHA purchase in Crockett and about half the house is under construction. Our FHA Appraiser disclosed everything, but he only gave value to the finished portion of the home, and disclosed the unfinished portions in a way that would not alarm the lender. The result: The appraisal slid right through underwriting without issue. This FHA transaction is “As Is”, needless to say.

We had a similar situation in Antioch in July, but the financing was conventional and we were therefore forced to use an HVCC appraiser we did not know. The HVCC appraiser over-stated the issues and beat up the property so badly that he almost killed the deal altogether. The deal did finally close, but closing was delayed by almost six weeks because of the appraisal problems.

Our point once again is to not be afraid of FHA financing. It is often safer than conventional.

As a lender, we actually prefer conventional financing, as FHA financing requires a lot more work on our part. We only tout FHA financing for our Realtor clients because it is not more work for them, and it allows them to close more transactions.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167