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?