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Question about Appraisals for FHA loans?

So I've gotten my FHA home loan, got my appraisal done, but 2 days before closing day this Friday, the loan company tells me FHA needs a 2nd appraisal on the house because they didn't know the seller had only lived there for 3 months and was just flipping the house, apparently here in Minnesota you have to say it's a flipped house or not. So they need a second appraisal and it won't be able to be appraised until the 6th and I can't close on the house until the 10th. Is this common? Should I be seeking legal help? Who was to blame for this? The seller or the loan company? Shouldn't someone be held accountable for this massive mistake? And is there a chance I don't get this house? Like if it somehow appraises less? But why would it go down lower? What are the chances I still get it? The person at the loan company seems to think it'll be fine. But I pretty much have to go through with it now because I gave 30 days notice to my landlord and I sunk in a bunch of money in fees like appraisal fee, earnest money, home inspection etc. What would you do if anything? Just roll with the punches I got dealt a bad hand here?

1 Answer

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  • 4 years ago

    Houses rarely close on the date that is scheduled.

    A home loan is never officially approved until you sign on the dotted line.

    What would "I" do? Just wait for the 2nd appraisal. What else is there to do at this point? What exactly do you think "legal help" will do? As long as you aren't being denied a loan due to protected class discrimination, a lender never has to lend to you.

    Does your offer have a financing contingency? If it does, you will get your earnest money returned if you aren't able to close.

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