Backdrop:I'm in charge of the PM arm of our brokerage, and have gone from 12 to 70+ units in under 12 months, commercial and residential (we've placed bars, PNC recently had us take over some space in their building from JLL - things are going fast and furious).

You can even work with local banks to get lower rates on an ARM loan.

If you know you are going to unload it in a few years you could also try for an interest only 5/1 ARM or something, which would boost your cashflow but leave you with no equity paydown.

If you get caught it ends up costing you an arm and a leg in fines and hiring a new licensed guy to redo the thing.

Normally you need proof to lower the valuation...so if this was an arms length non-foreclosure purchase and you have an appraisal...that could be worth gold....you could take your contract and appraisal and argue that is the current value...with a professional opinion to back it up...who has seen the home and not valued by mass appraisal standards.If you bought by some other means, then they may not approve the reduction.If you're not holding it long term it may not be worth the fight.Your savings might be $300-$400 a year...so long term it can help...and it might help by keeping the value lower for longer. 

Not some greedy crook, and not one thats going to charge you an arm and a leg. 

As long as you acquired the property in an arm's length transaction, your tax basis is what you actually paid for it.

The painters just want to charge an arm and a leg from the layperson.

I am looking to start construction on my home and I'm interested to hear if anyone knows of any banks that are doing one time closings with a 30 year fixed mortgage instead of an ARM product?

My credit union will do a 15 year fixed or a 7/1 arm @ 25 year amortization, both at 4.75%.