Refinancing my Rental

[Ariel K.]

I purchased a 4plex in late 2018 in Ohio. The property appraised as a 4plex and I got a Fannie 30-year fixed mortgage with no issues. Credit and income are no problem at all. Purchase price was $80k.

I am trying to refinance and pull money out, so I went to get another Fannie loan, 30 year fixed and that's when the issues started. I got an appraisal and the amount came out to $125k, however, it was listed as a 3-unit + ADU. The bottom unit is below grade and "inferior". The property is zoned single family and I called the city zoning who told me that it wouldn't be an issue to rebuild should something happen but the appraiser said the highest and best use was a SFH. I challenged this appraisal and lost.

I went to another bank who ordered an appraisal from THE SAME APPRAISER. I’ve tried to go to other non-QM lenders and no dice. One turned me down, another wanted a very high number of points (3.75 for a 4.9% 30 year loan). Should I get another appraisal and request a different appraiser? Is there a lender who can help?

Thanks!!