FHA appraisal question - HELP!!

[Anonymous]

My fiance and I decided to go forth with the FHA loan because the monthly payments were lower, and we would need less of a down payment. We had the 5% for a conventional saved, but decided we could use the money for savings to get the basement finished next year. I talked to the Loan Officer today, and she said there is maybe a problem. There is another FHA appraisal out there, possibly, from a sale that fell through on this house fall, and this might prevent our loan from going through, in which case we would go back to the conventional. Does this make sense? At this point we have gotten good and comfortable with the smaller down payment and monthly payment, and don't especially want to go back to a conventional loan! Why would someone else backing out of their purchase affect what kind of loan we get?

[Anonymous]

If there is already an appraisal in FHA's system for the property that is lower than the sales price of the home it would affect the deal.  I was not aware that FHA held that info, but it is quite possible.

[Anonymous]

I don't think that's it because it aapraised $50k more than the sales price.

[WannaHouse]

In that case, it may have some major repair issues that need to be addressed before it will pass an FHA inspection. It MAY be possible to ask the seller to fix these if that is the case.

[Anonymous]

The house is in near mint condition. And this other appraisal might not have even happened. It's all mysterious!

[medicgrrl]

She may be referring to the fact that there is already a case number assigned on this property to a previous purchaser.  Call her in the morning and get clarification on what the issue is and why she feels it could kill the prospect of going FHA.  If it is just the case number then there are ways to get past that.