First plan fell through... Advice?

Question

Hello all, I've had the plan of refinancing my current fha loan to conventional then purchasing my second duplex fha again to be able to have a low dp.

I've been owner occupying this one for 2 years and 2 years ago I had 2 appraisals for 125k and 127k. I used a mortgage broker who was lackadaisical and I had to constantly stay on top of him. When we finally got to the appraisal time the appraiser was in my house 5 minutes didn't ask any questions and my appraisal was only 100k. On his report he showed 3 other duplexes in the area none of which had a garage seek for about that price.

I asked my mortgage broker about getting a second appraisal and he just has no motivation and I told him I was just going to go another direction.

Now I'm wondering if I should try to refinance this one into a conventional again, if I should go for another FHA, or another route (I was told about a 80/10 but I haven't looked into it yet). I think I'll be eligible for a second FHA because I have gotten married, have a step child now, we have started foster parenting so we fondant have more kids at the house. I think that will get me through the addition to the family clause of a second FHA. Will they care it's a duplex going this method of a second?

Thank you for any help, advice, or recommendations in advance!

Travis Sperr · Answer

@Anthony Patrizitry again with a different lender, find someone who knows what they are doing and wants your business. They last guy sounds like a schmuck. Your only risk is paying for an appraisal, duplex might be $600? When the appraiser shows up give him the comps you are seeing for value and explain why you think they are good comps.

Likely better to drop the MI than to get a second FHA mortgage.

Paul Stout · Answer

@Anthony PatriziI had the same thing happen and then I contacted First Financial and spoke to Barb Quinlan.  The refi was easy and my appraisal came back $40k higher than the brokers appraiser.  They also do 90% LTV on HELOC's.  I was very pleased with their service.  I think the branch I worked with was in Highland.

Beverly Fast Sinclair · Answer

Nate is correct.  Appraisals must have 3 current sales of similiar properties.  In central Indiana, banks will only use sales from up to 12 months back, but no longer than that.  In an appraisal, there is also a place for the appraiser to add or subtract value to any of the comps or subject property.  If none of the recent sales have garages, that would be reason enough to go back to the lender and request a different appraisal.  You might do better to pull the whole file and start new with someone else.  It helps if you have your 3 comparable active and sold sales printed out to give to the appraiser.  A lot of them appreciate you saving their time doing that, and you can obviously choose the sales that would work best for you (if there are more than three.)  Good luck!

Paul Stout · Answer

Yes @Travis Weldon

Travis Weldon · Answer

@Paul Stoutdid they refi into a conventional 30? I'm also looking for a local bank/lender in NW Indiana.

Anthony Patrizi · Answer

Paul, thank you very much I'll be contacting her on Monday.

Anthony Patrizi · Answer

Are there any lenders or brokers on here near Northwest Indiana NWI?

Anthony Patrizi · Answer

Thank you Travis, I agree.

Anthony Patrizi · Answer

Yea, I only had to live in it one year for the FHA but to get a second one the are done requirements you have to meet but I think I will meet then because of my increasing family size. Thank you and look forward to hearing from Bill and anyone else that could help.

Nate Wightman · Answer

Hi @Anthony Patrizi  In colorado the appraiser had to provide 3 types of appraisal.  One was as you have there with comps. One was based on income (I think).  I don't recall the last type.  If you read thru your old appraisals you should compare the old ones to the new one just to see if they are done in the same way.  The appraiser may have done your appraisal as a single family home which I think would be wrong but easy.  If your market in general has gone up the last 2 years and the fact that they left out your garages and if it is a SFH appraisal.   This seems to me that you need another appraisal done.  You really need an appraiser to chime in and give some feedback on this.  Kinda like that movie... if you ask it they will come... I think since you have lived there more than a year you may be able to get another FHA loan without refinancing... again I am a bit unsure on this item also.  @Bill S. is a wealth of info and maybe he can chime in here.  My initial thoughts are a new mortgage broker who is more helpful and then a new appraisal.   but get some more feedback first.   good luck.

First plan fell through... Advice?

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