Buying A Home
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house assessment and fha loans

So we looked at a house that we really like. Problem is the assessment that is listed on the house is about 30k less then what they are asking. With an fha loan, would they even give us the loan? To my knowledge they wouldn't because they wouldn't want you upside down before you even start.  They are asking 227k, the house is assessed at 190k.

they recently updated the kitchen so maybe they would have to have it reassessed? Im not sure if that would work in our favor incase the assessment comes in higher and they decide to up the price of the house?

Anyone have any experience with this? TIA!   eta our realtor gives us a sheet on each house that is for sale, the assessment is on that.

Re: house assessment and fha loans

  • Which assessment are you referring to?

    When you make an offer on a home and move forward with an FHA loan, you'll pay an independent company to asses the home. That's the value they use, and they won't loan anything more than that (less your down payment).

    We were in contact on one house and it was appraised at $5k less than our agreed upon purchase price. At that point, your options are to renegotiate with the seller, or pay the difference in cash. Our seller would not negotiate, and we didn't want to pay the difference, so we walked.

  • The tax assessment is different from the appraised value.  Our assessed value for tax purposes is about 40K less than the appraised value of our home.  We did a VA loan, but the process is probably similar for FHA. 

    When we went under contract, our lender scheduled an appraisal.  The appraiser went to the house, took detailed notes, looked at comps for the area, and wrote up an appraisal based on that.  The seller was not given any information regarding the appraisal other than everything was fine.  The house appraised for about 10K over the sales price, but the seller didn't know that (she still doesn't).

    Your realtor should be able to give you an idea of whether or not the house you're interested will appraise for the sales price.  If we looked at a property that wouldn't pass the VA appraisal our realtor let us know.  GL!

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  • I think you are confusing tax assessment value with appraisal value. After an offer is placed on a home, an appraisal is ordered and submitted to lender. This is the value the lender will look at, not tax assessment value.

    I'm a little surprised your REA has not explained the difference to you. Did they not explain the offer/lending process?? 


  • Our home assessed for 25k less than contract price.  Our buyers had fHa loan and they opted to pay us the cash difference.
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