2 Parcels 1 Conventional Loan? Appraisal Issue

[Michael Furcron]

Hi Guys,

Looking for some advice...

Okay so we are 1.5 weeks away from (hopefully) closing on a property in rural Virginia.  It is 2 parcels in 1 contract, 100 acres and 30 acres.  The 100 acre parcel has the main house, guest house, and several out buildings.  The 2nd parcel is all wooded, no buildings. 

The contract is for 930k w/ 20k seller subsidy

We are putting down 20-25% depending on what is needed. The lender is ready to do 2 trusts because depending on how the appraiser considers the guest house (2 unit vs guest house?) we may or may not hit the max for jumbo loans in that area.

The mortgage broker I am using was upfront that this was going to be a tough deal, but thought he could make it happen. He has saved a few deals for me in the past and is very experienced. So I am trying to have faith.

The appriser came by on Friday and basically apologized because he could only apprise the properties separately as they would have 2 different "Highest and Best Uses". He seemed to think that this was likely to make the deal much tougher to do. However, he said (and is the 2nd to mention this) that a local bank would likely not have a problem with the 2 lots being different highest and best uses, but a mortgage broker would.

I am hoping to get a better answer in the next couple of days, but would like to be prepared if my mortgage broker can't make it happen.

Am I worrying for no reason? Is a local bank a good option or does that come with another set of problems?

Thanks guys your expertise is greatly appreciated!