Can anything be done if my fha appraisal was denied?

Posted on Sep 18, 2012 in FHA Information

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Sisa Waqa

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Question by : Can anything be done if my fha appraisal was denied?
I live in NY and recently agreed to terms on an fha home loan. The loan was approved and the inspection passed, this but the loan was then denied based on the appraisal, treat per the underwriter. How does an inspection pass, information pills but not the appraisal?The value of the home is below market value and there are a few issues that must be addressed, but nothing major, according to the inspector. Is there anything that can be done? Should I apply for a different type of mortgage? Any advice would be helpful. Thanks.

Best answer:

Answer by David Z
This is good news because it just saved you from paying too much.

it means the home appraised for less than purchase price you agreed to. Most lenders tell you that because you need to go back to seller.

You need to renogotiate price with seller down the appraisal amount. If seller will not comply you need to move onto next house.

You are out the cost of apprraisal but that is it.

What do you think? Answer below!

5avg.rating 16 votes.


  1. while I could be wrong, you don’t have an FHA loan–but
    an FHA insurance policy on whatever bank loan you get.

    the gov does not lend but it does insure…who knows why??

    IT is not that the appraisal was denied–stupid gov speak,
    but that the insurance must be for a lower amount on that
    particular home. IT proves that 2 different bodies are not talking
    to each other. Instead of your loan being for ‘a’ amount,
    what you perhaps agreed to pay for the home, it looks like the
    home is worth less and therefore, must be insured for less.

    try that approach–

    seek a lower purchase price on that specific home.

    or find a fancier home.

  2. Good read on lenders.

  3. I just sent this post to a bunch of my friends – I agree with most of what you’re saying here and the way you’ve presented it is awesome.