Chicago Low Rent Schedule = FHA Self Sufficiency FAIL

[Jason Krasavage]

Trying to close on our first 4 unit this week. Everything has gone relatively perfectly until now. We got the appraisal back Monday, and although it was at the exact valuation we wanted, and didn't require any changes to comply with FHA standards, the appraiser's rent schedule was low.

It's a 4 unit on a double wide lot with 5 parking spaces, 2 of which are in a garage. The appraiser didn't add a single dollar to the rent schedule for income from the parking spaces (which market value go for around $500/mo total). All the other rents were either around or above our initial market value estimates. This meant that after the appraisal made its way through underwriting, our PITI was ~$120 too high for our property to pass FHA's self sufficiency test.

Lender wants us to bring a lot more money to the closing table, in combination with a lower insurance premium, to get the deal closed and pass the the self sufficiency test.

What are my other options? Can I argue with the appraisal company? It seems crazy that not even a dime from parking spots would be included, when he valued the three uncovered spots at $6000 and the 2 car garage at $8000 in his comps. Thanks in advance everyone.