what happens with lower appraised values on FHA, Conventional, and
When a property appraisal comes in lower than the agreed-upon purchase price, it can complicate financing for the buyer. Here's what typically happens for FHA, Conventional, and VA mortgages:
1. FHA Mortgages
Impact of a Low Appraisal: The loan amount is limited to the lower of the purchase price or the appraised value. A low appraisal means the buyer must:
Renegotiate the purchase price with the seller.
Pay the difference in cash.
Walk away if the contract allows it.
Required Repairs: FHA appraisals assess both value and property condition. If issues arise (e.g., safety concerns), the seller…
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