Appraisal rating of home

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I was just told by a lender that due to the appraiser rating the property in "fair" condition, the lender has determined they do not wish to move forward with the loan. The property did appraise at 12K over purchase price and 37K over loan.
Any idea why a lender would not fund a loan on a property that needed some cosmetic fixes and was aging?

jameshogg · Posted: Mon May 18, 2009 7:56 pm Post subject:

Hi Cturchi,

Your lender should have approved a loan for you. However, you can speak to other lenders and check out if they can offer you a home improvement loan. This community also has a large number of lenders. You can contact them and get a no obligation free mortgage quote. This will let you know what type of rates and terms you would receive for the loan.

Thanks

apexoffice · Posted: Mon May 18, 2009 8:42 pm Post subject:

I have heard of some lenders that do that. Many lenders have an automatic protocol to deny the loan for anyhting with a "Fair" condition rating or less, at least for their conventional loans.

In my opinion, I interpret "Fair" as describing a material that is nearing the end of its useful physical life. This typically being applicable to very worn floor coverings, curling shingles, etc. The next step down being a "Poor" condition rating which I interpret as being at the end of its useful physical life such as floor coverings worn to the subfloor or an actively leaking roof etc.

If the dwelling fits any of these or similar criteria then you may want to talk to another lender, perhaps one that has alternatives to conventional products. If you think the condition is superior to the scenario I have described, perhaps you should consider a second opinion from another appraiser.

Best of luck to you!

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