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What must my home appraise for (VA loan)?

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treski
Frequent Contributor

What must my home appraise for (VA loan)?

Hello!

 

I am having a bit of confusion.  So let me give you my details:

 

New construction home that finished in December 2014...so I guess that makes it existing.  ;-)

 

List price:  $209,300

 

Seller (builder) will not accept less because...brand-new home.

 

I need closing costs paid by seller.  Roughly $6,000

 

Our offer:  $215,300

 

Our earnest amount:  $1,000

 

I'm just confused about how much exactly it needs to appraise at if I want to pay nothing out-of-pocket at closing.

 

Thanks!

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Message 1 of 5
4 REPLIES 4
skigirl916
Established Contributor

Re: What must my home appraise for (VA loan)?


@treski wrote:

Hello!

 

I am having a bit of confusion.  So let me give you my details:

 

New construction home that finished in December 2014...so I guess that makes it existing.  ;-)

 

List price:  $209,300

 

Seller (builder) will not accept less because...brand-new home.

 

I need closing costs paid by seller.  Roughly $6,000

 

Our offer:  $215,300

 

Our earnest amount:  $1,000

 

I'm just confused about how much exactly it needs to appraise at if I want to pay nothing out-of-pocket at closing.

 

Thanks!


The red combined, less any down payment (I'm assuming it's just the $1K) is what the mortgage would be for, so it must appraise for at least that much - $220,300.

Message 2 of 5
StartingOver10
Moderator Emerita

Re: What must my home appraise for (VA loan)?

Appraisal must be contract price or more. You offered 215k with 6k of closing costs, so $215k. What is your market like now? Sellers market or not?
Message 3 of 5
treski
Frequent Contributor

Re: What must my home appraise for (VA loan)?

Sellers market most definitely. Hopefully mine appraises, as it's new construction on 1/3 acre. I hope that carries weight. There are many homes in the same area with much smaller lots that are 30-40 years old...and I don't know what they have sold for but they are certainly listed much higher than mine.
NFCU Flagship Rewards Visa $25k, USAA MC $3.5k, USAA Amex $3.5k
Message 4 of 5
StartingOver10
Moderator Emerita

Re: What must my home appraise for (VA loan)?

The appraiser will have to use similar sold comps to your newly built home. If there is an appraisal issue, just go back to the seller/builder and renegotiate the price. Sometimes this is possible, sometimes the seller/builder is not willing to negotiate. Even in a seller's market it is possible to renegotiate the price in the face of an appraisal that falls short of the contract price.

Message 5 of 5
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