Hi- we are building a new construction home in a new neighborhood that has not even completed a house yet. We have picked out our lot, structural options and and design choices but the build has not started at all (still a dirt lot). We are using a VA loan… Yesterday we got an email from our loan officer saying the appraisal was complete and it appraised 50k less than what we are contracted for… I’m having a hard time understanding two things.. 1. Why would an appraisal be done without any type of structure at all… and 2. From my understanding this will only be valid 6 months.. we are not expecting to close until May. When we asked if we could get an appraisal closer to close we were told “unfortunately not with the VA, you can do a independent appraisal if you choose”… the appraisal was part of the costs when we decided to go with a preferred lender… but who should I have to pay for another appraisal because you decided to do an appraisal that not only isn’t accurate, it will expire well before close? Any advice would be greatly appreciated, it just isn’t making sense to me and unless I’m missing something I don’t think we should have to cover the costs for another appraisal.
VA Loan Appraisal before build
byu/Logical_Ad_8965 inMilitaryFinance
Posted by Logical_Ad_8965
1 Comment
It could be a master appraisal.
Otherwise;
For ordering an appraisal for new construction (VA):
*To be eligible for appraisal as “new construction”, the property must be fully completed or completed except for customer preference items (such as, interior wall finishes, floor covering, appliances, fixtures and equipment, etc.) and those improvements for which escrows are permitted*
Lenders sometimes refer to this requirement as “90% complete”
If they try to get you to pay for another appraisal, push back. They know you’re not closing before May so they don’t have a leg to stand on when the appraisal expires.