FHA "85% Rule" HELP!!!!

[Paul Burbank]

We are currently in the process of closing on our first property using FHA financing. Most everything has gone smoothly until now. I am just finding out that with 3-4 unit properties 85% of the gross monthly income must be greater than PITI to meet FHA requirements.

This is a triplex in which each unit should rent easily for a minimum of $1400 per month (probably closer to $1600). The appraisal states that fair market value is only $1150, which is actually less then they rent for now.

My real estate agent has already provided the bank with several pieces of evidence illustrating that this appraisal is wrong. Everything from copies of leases from other local properties, to price listings at area apartment complexes, to listings for other units in 2-4 unit buildings within blocks of the property in question. We are waiting to here back whether or not they will approve the loan based on this information.

I am trying to see if there is anything else I might be able to do to move this forward. Can I ask the bank to allow us to get a new appraisal? Might I be able to switch from FHA to a conventional with 5% down? Is there any chance that the bank will accept this application if the appraisal doesn't explicitly state that the 85% rule is met? Any help would be GREATLY appreciated. This deal is hanging on by a thread.