Purchsing a home. What happens when the property I’m buying Is appraised less than the offer?
December 14th, 2010 | by admin |I’m I’m contract on a property in san Diego, ca. My offer was 299,999 I’m doing an FHA loan. The appraisal came back at 290,000, what happens now.
Depending on how your offer was worded, you might be able to back out and get your deposit back. If you still want to buy the house and the seller won’t come down on price, you’d need a larger down payment since the lender will only give a mortgage based on the appraisal minus the % they require as a down payment.
2 Responses to “Purchsing a home. What happens when the property I’m buying Is appraised less than the offer?”
By Judy on Dec 14, 2010 | Reply
Depending on how your offer was worded, you might be able to back out and get your deposit back. If you still want to buy the house and the seller won’t come down on price, you’d need a larger down payment since the lender will only give a mortgage based on the appraisal minus the % they require as a down payment.
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By realtor.sailor on Dec 14, 2010 | Reply
You won’t get the loan, even if you have the cash to pay the difference. An appraisal is an opinion based on facts. You could get a second appraisal, but I doubt it will be $10K less. You can either re-negotiate with the seller or find another home.
realtor.sailor
References :
I’m a Realtor