Thread Options
#2185376 - 07/13/18 07:51 PM Appraisal Question
MTBDeb Offline
Junior Member
Joined: Oct 2016
Posts: 42
A couple made application for a construction loan to construct their primary residence. The amount of the request was $400,000. The appraisal was just received and it came in lower than expected, so they need $200,000 additional funds. The couple actually will be receiving funds from a family member, that would cover these costs, but probably not until after the project is complete. So, this couple has asked about the possibility of applying for a $200,000 draw line, (which the bank would control in the same manner as the 1st loan of $400,000).

The couple would like this additional line because if they receive their money in time, they will use those funds instead of the $200,000. Also they have offered a commercial building as collateral for the $200,000 portion.

So, considering the new commercial appraisal threshold and the transaction value, (the combined transaction value is $600,000, but split between 2 properties), can we do an in-house valuation? Or, do we need to make our customers pay for a full blown, commercial appraisal?

Thank you!!!

Return to Top
Lending Compliance
#2185404 - 07/14/18 07:22 AM Re: Appraisal Question MTBDeb
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,242
Galveston, TX
They are separate transactions.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z