Tuesday, August 9, 2011

FHA Loan and Appraisal?

I have a signed contract on an old farm property (14.5 acres) - house was built in 1800 and added on over time (now has jacuzzi, master bath, walkin closet, etc), there is an old barn, and an unfinished cottage on the property. Everything works electrically (just not very clean), there is some shifting of the foundation but not major, and other minor repairs. I am approved for an FHA loan and the bank has recently solicited an appraisal. The first appraiser withdrew from the process and called the project "too complex." However, he made comments that there were some structural issues with the old barn. The bank has since solicited another appraiser to complete the project. It is my understanding that there is no question about the value not being enough but the other safety/structural issues that are required as part of the FHA. The final appraisal is now expected anyday and the underwriter opinion to follow. I would also note that I have already been able to purchase homeowners insurance on property. What is the likelihood that they deny me because of other buildings on the property? Can I sue if they do not approve me?

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