Assessed Values of land and FHA loan. (appraisal, sales, housing)

[daJwy4life01]

I was with my realator about to make an offer today when she recieves the tax assessment of the property I want to buy (In halifax, VA). The county assessed the land at about 88,000 (28.55 acres) and the house at 65,000. The realator said I would have problems getting a loan due to the land/building ratio (which I have not been able to find anything about) but she said the land is only suppose to be about 30% of the loan. With an FHA loan; however, you only need the value of the first 10 acres which would put the land at about 30% because the property is listed for 105,000 and we are offering 95,000 at first.

My questions are:Can anyone explain to me this building/land ratio and if there is a way I could get around it? Also I am eligible for the usda guarenteed rural housing loan program: which would be better to use the fha or usda? Also could the usda loan help me out with this ratio conflict?

Thanks in advance,

Jason

[2bindenver]

Your Realtor may be correct. or not.

Your lender may be able to help you compare the loan types and explain the appraised value vs. assesed value in regards to the loan.

[TimtheGuy]

Originally Posted by daJwy4life01

I was with my realator about to make an offer today when she recieves the tax assessment of the property I want to buy (In halifax, VA). The county assessed the land at about 88,000 (28.55 acres) and the house at 65,000. The realator said I would have problems getting a loan due to the land/building ratio (which I have not been able to find anything about) but she said the land is only suppose to be about 30% of the loan. With an FHA loan; however, you only need the value of the first 10 acres which would put the land at about 30% because the property is listed for 105,000 and we are offering 95,000 at first.

My questions are:Can anyone explain to me this building/land ratio and if there is a way I could get around it? Also I am eligible for the usda guarenteed rural housing loan program: which would be better to use the fha or usda? Also could the usda loan help me out with this ratio conflict?

Thanks in advance,

Jason

What the county assessments are has zero impact. It will come down to how the appraisal comes out. If there are good comparable sales (i.e. large acerage of similar size with similar homes that have sold recently and justify the price you are paying) you may be all right.

Large acerage properties are not desireable by FHA or conventional, but sometimes can be done. Is any of the land tillable (farmable)? If so, it is a dead deal for FHA or conventional.