FHA laon and appraisal

[alpha_1976]

Originally Posted by Diana Holbrook

I think the answer to your question is that you really want it to appraise at $440. Try not to overthink what-ifs until they happen, but if the appraisal comes back low, it means the bank won't loan the full value including your repairs. They will not loan more than the appraisal. You will either have to renegotiate the purchase price, or revise your repair estimate.

well just wanted to update. Everything is OK. Appraisal after the repairs came well above. Purchase price $472K + $37K for repairs; appraisal $560K not that I totally believe it but house does have a lot of potential. Again thanks everyone who responded.

[Annemieke Roell]

Originally Posted by jaynarie

The appraiser values the house based on the current condition. Future repairs play no part in the appraiser's value.

Not necessarily. Depending on the type of repairs, FHA will require those repairs to be fixed before closing and the appraisa; will be done "subject to" those repairs.

And the borrower cannot request the appraisal be donbe a certain way. While the borrower pays for the appraisal, the lender is the appraiser's client.