Appraisal came in low on a 203k loan...now what?

[Colby D Hollins]

Hello BP members,

So I am about to close on my 203k construction loan; however, my appraisal came in lower than what I needed it to be at.

Details:

Purchase price: $105k

Rehab + contingency: $100k

Loan amount: $205k

Down payment amount: $13k

Appraisal: $185k

Unfortunately, now I have been given a couple options from the lender which are:

1. Either pay the difference (which I don't necessarily have all of it, so that's not really an option).

2. Renegotiate the amount of the loan (which may not be accepted, since it was a bank foreclosure).

3. Or knock off some of the things on my rehab ( which may not be the best option because then the appraisal could come in lower, because the appraisal was based off of the rehab I was going to do).

Is there any creative financing options that I could possibly use to get this deal to close?

Any input would be appreciated.