mindy i am in houston for the last 8 years. i can tell you this much... pre-harvey we had arguably some of the most overvalued real estate... post harvey we will see a lot of communities simply not get rebuilt.there is actually a lot of rental capacity in houston so i dont think its a similar situation to what NOLA had and comparisons in recent history are going to be hard to find.in the short term , people are still gutting houses... actually theres a shortage of drywall in some of the suburbslabor is also in shortage... but i think theres a lot of people laid off from oil and gas from the last downturn that will welcome the work with open arms.... but the problem is some of these floodway communitites simply wont come back.there is no good solution to the problem houston has at this point without MASSIVE infrastructure development and buying properties in floodways with eminent domain (which i am sure many will be happy to have happen to their flooded house)ive personally talked to 3 diff people that said they are planning on taking insurance money  and fire selling house the first chance they get.  

Landlords will be in demanding higher rents as there will be a shortage of housing for the next year or while properties are rebuilt. 4.

On the recent podcast, Sara Weaver mentions there's a national nurse shortage which increases demand for travel nurses.

So the survey was helpful in getting price down and the shortage didnt matter since it will have a different foot print and new sq footage for tax and survey purposes. 

I don't know the market real well; but there is a university and a ski area which usually equals an affordable housing shortage...

That's a lender estimate based upon credit reporting which does not factor in recent payments, outstanding fees, escrow balances (or shortages), etc. 

Is the seller willing to cough up the $32,480 shortage?

They might also be able to get away with accepting a promissory note for the shortage, or maybe part of the shortage.

Cody McDowell The first thing I should say is that I do not see the market here in Omaha crashing like your mentors seem to believe.Not only is Omaha not overly inflated in terms of values, but I see a definite shortage in single family housing that is affordable in the sub $250k price range.There are bidding wars (that I have been a part of), there is appreciation and there isn’t enough building.

Otherwise like Chris mentioned look at doing the 1st for just a bit more than what you were planning to finance if you had already sold your existing home (do it for a bit more than expected for any unforeseen shortage when you sell, like seller paid borrower concessions, repairs you didn't expect, ect) then get a 2nd mortgage to finance the difference to avoid the PMI and pay off the 2nd when home sells, might want to consider a HELOC on the new property so that once paid off, you still have access to the funds if ever needed and while not needed you don't pay any interest.