C5 appraisal is killing my loan!! Appraised for 20k above sale amount!

QuestionsC5 appraisal is killing my loan!! Appraised for 20k above sale amount!
Bernie Plunkett asked 4 years ago

We found an amazing deal on a cosmetic fixer upper townhome in our desired neighborhood. Our offer of 320k was accepted with 3% down. Remodeled homes identical to this one currently sell for 390-410k. Our appraisal in came back at 340k in its current condition, but it also came with a c5 rating. The appraiser said that the floors would need to be replaced and kitchen cabinets be repaired to get a c4 rating and that by doing the repairs the value would go up to 350k. The only problem is that the seller is NOT willing to put any money into the house and that these repairs would need to be completed prior to closing. Is there anything that I can do to salvage this deal? I can’t see myself putting money into a house that I do not own yet, however I also do not want to pass on such an amazing deal. Keep in mind that I am a first time buyer using a conventional loan through a Freddie Mac program allowing for 3% down. Please help!! I am open to any/all suggestions.

Thank you!!!!

Register New Account
Reset Password