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Frequent Contributor
Peter1142
Posts: 336
Registered: ‎08-17-2013

appraisal value question

For FHA loans, assuming no seller's concession, does the appraised value need to be higher than the loan amount or loan amount + 3.5% down payment... I.e. if the appraisal is for 245000, what is the maximum sale price I can offer with 3.5% down assuming no sellers concession and financed UFMIP?
Super Contributor
ShanetheMortgageMan
Posts: 7,377
Registered: ‎09-28-2007

Re: appraisal value question

If you don't want to put any more than 3.5% down, then the appraisal needs to at least come in at the purchase price.  On a puchase, FHA loan amounts go to 96.5% of the lower of the purchase price or appraised value, before the UFMIP is rolled in.  In your example, it'd need to appraise at $245k if you just want to put down $8,575 (3.5% of $245k).

Frequent Contributor
Peter1142
Posts: 336
Registered: ‎08-17-2013

Re: appraisal value question

Got it, thanks Shane... the down payment doesn't count because it is the minimum.

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