Bikewanderer
Gold Member
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FHA rules don't allow a house and property to be considered. Comps are run based on a 5 acre lot size.
Property appraisals
- Thread starter JDgreen227
- Start date
Appraisers are now petrified to put a number on a property that may be to high. Banks don't have the stones to risk more bad loans. The current regulations and qualifications needed for a home loan make it very difficult to qualify. This is all a result of corporate greed and now average Joe pays the price again
sdkubota
Platinum Member
It isn't the banks but the government regulations placed on them that causes this. Ever since the government openly and willingly lent people money to purchase homes with no income, no job, and no credit, things have gotten worse. You are lucky to even get a mortgage nowdays without having 50% equity or liquidity.
Bikewanderer
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Whatever - they're unwittingly doing you a favor. Here's the key to financial happiness for anyone that cares to read it:
Dave Ramsey Homepage - daveramsey.com
They are not doing me any favors. I have built,bought and sold more properties than I can count. Always paid my bills. Corporate America found a way to create a cash cow out of homeowners. Most...most, homeowners are not flippers. They are families looking for their piece of America. Many bought into the froth, not knowing what was really going on ( this is their own fault ) Corporate greed created the housing crisis, plain and simple.
When it came tumbling down, millions of people were stuck in the rubble. When the housing market crashes, it takes millions and millions of jobs with it. The largest job generator in the country is housing. Until that is revived, unemployment will still be off the charts. Yes, it is always about money..always.
300UGUY
Super Member
I see places sold around here for 10 or 20% down. INHO, that's a good thing.
Pops15
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JD, Around here housing prices are still down more than 30% from pre crash prices. 190K isn't what you were looking for but it's probably in the ballpark. The house that sold for 183K 3 years ago would likely sell for less now.
Pops15
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300, I'm surprised any bank would make a loan with only 10% down. Stuff like that is what caused this mess. I'm hearing it takes a minimum of 20% down and impeccable credit or they won't make the loan.
300UGUY
Super Member
I saw that at a new development. Some developer's have been buying lots, mostly for taxes. Then they are building 3 bedroom ranch style house. About $120K. At that price, they can sell them. I think the 10% is from a developer putting up some cash? Just a sign I saw. 5 years ago, the average house being built here was 3K square feet, maybe $350K. Gonna take a long time to get back to that. My neighbor has been trying to sell her 3K sq ft house for 5 years. She has over $400K into it. She has been trying to sell it for $300K, hasn't had a single offer. She recently complained that the house was eating up her savings. I think a lot of folks are beating up their retirement savings, they just don't want to let go.
joshuabardwell
Elite Member
I recently did a refi, so not exactly the same situation as you, but the lender said that they were required by law to have an independent appraisal... I think it was less than a year old. After the real estate bubble burst, there were a whole lot more laws passed regulating real estate loans. What the banks used to do is have an appraiser (who worked for the bank) give a dramatically high appraisal so that the bank could loan a ridiculous amount of money. The requirement by law to have recent, third-party appraisals on file, is to make sure that banks are not playing shady games.