Posted on: 01st Jan, 2012 02:44 pm
My wife and I have found the perfect cabin on a really nice lake close to home for our family and started the loan application. We both have 800+ credit score, putting down 20%, debt to income ratio is low and solid job history. The appraisal on the cabin was higher than what we are paying so that was good. My issue is this... the underwriter has an issue with the appraisal being the land/lakeshore (110') is worth more than the cabin. Building value to land value ratio is 20%. This is typical for this lake and the appraiser even noted that in his report. The underwriter believes we should be looking at a lot loan and not a conventional mortgage being that the building to land ratio is low. Other cabins have been sold on this lake with a conventional mortgage with similar building to land ratio (17% - 28%). I am not sure if I am being decimated against and don't want to believe that. What are my options to convince the underwriter otherwise? By the way, I am working this issue through my loan officer and realtor. Any feedback would be greatly appreciated. Thank you.
Hi Diamonddave,
You may have a word with your appraiser and ask for a rebuttal if you find something is wrong. You can let the appraiser know the fact that other cabins located here have conventional mortgages and check out if he changes his opinion. This will help you in convincing your mortgage underwriter.
You may have a word with your appraiser and ask for a rebuttal if you find something is wrong. You can let the appraiser know the fact that other cabins located here have conventional mortgages and check out if he changes his opinion. This will help you in convincing your mortgage underwriter.
Demand that the appraisal issue be taken to the UW manager and get resolved. If not, go to another lender. UW is opionated as well as automated.
