Worried about appraisal - don't think 3rd bedroom will count (loan, requirements)

[abbyme24]

Hey everyone,

So I'm pretty far along the process of buying my first home. My financing and home inspection was taken care of. Now, all we need is the appraisal to move forward.

I am worried though because I'm not sure if the 3rd bedroom (a finished attic) will count as a bedroom for the two FHA appraisers. (It's a flip between 90-180 days thus the two appraisal requirement.)

From what I've gathered neither the windows (too small) nor staircase (too narrow) meet the requirements for a bedroom. If the house is considered a 2 bedroom, it is sure to appraise low. There actually isn't even a single two bedroom house in the entire neighborhood.

So my question is, if they come back and say it's only a two bedroom, can the seller fix it? If they make the staircase wider and put in larger windows, can they get it re-appraised as a three bedroom?

[Pfhtex]

Outfit it like a bedroom, hang a drape over the small window(?), go Conventional FNMA Homeready, work with a lender adept at flipping that does not have seasoning requirements (cough!)

[TexasDillo]

Originally Posted by abbyme24

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So my question is, if they come back and say it's only a two bedroom, can the seller fix it? If they make the staircase wider and put in larger windows, can they get it re-appraised as a three bedroom?

There's a bit more to this issue than you describe above, particularly with FHA standards. Also check your local building code(s) as those codes should stipulate minimum bedroom requirements and give much more guidance on windows, window placement, minimum bedroom size, access, minimum room height, etc.

Again, FHA requirements are more stringent than most conventional loan programs but most programs still require compliance with the minimum building standards.

Best of luck on your endeavors.

[abbyme24]

Thanks! It was an FHA loan for a flip between 90-180 days so we actually had two appraisals done. Both appraisers considered it a 3rd bedroom so the house appraised at the correct value