Applicant requested $25,000 loan secured by dwelling. Applicant didn’t qualify for $25,000 based on DTI. Lender verbally countered for a $20,000 loan. Applicant accepted the offer for $20,000. When the appraisal came back, there was not enough equity to make a $20,000 loan; so, the loan is being denied.

Does the denial show the original $25,000 loan amount and DTI denial reason or the counter offer loan amount of $20,000 and collateral value reason?

I’m thinking that the denial is on the original $25,000; but, I’m not confident about the decision. I would appreciate any insights others are willing to offer.

the original $25,000

Thank you so much!

Is that even a counteroffer or would that just be considered them reapplying for a lower amount?

It was a denial of original request with counteroffer, which was also denied.

I thought for it to be a counteroffer the new terms would need to have been approved. It just sounded like they were saying you are denied but you can apply for a lower amount. So I would think two applications were taken and two denials are needed.

I believe one denial of the original amount is all that is needed.

I probably have what a counteroffer is wrong. I thought it had to be a firm offer to be a counteroffer.