Why FHA Appraisal Rules Can Cost You Your Dream Home
The Home Valuation Code of Conduct is designed so that real estate agents and mortgage companies can't use 'routine' appraisers to generate inflated appraisals with higher-than-warranted home values.
In theory, this is supposed to prevent homeowners from winding up upside-down on their mortgage; stuck in a home whose value is nowhere near the loan amount.
In practice, the HVCC presents a range of difficulties to industry professionals.
Appraisals must go through official channels, now, which can take weeks or even months to summon a qualified appraiser.
Appraisers are often called upon to appraise areas with which they're wholly unfamiliar; resulting in inaccurate appraisals and poor neighborhood evaluations and appraisals.
The HVCC was designed to prevent inflated home appraisals, but has actually resulted in under-valuing homes in many circumstances.
This means that homeowners applying for FHA loans can't get approved because the home values are coming in too low to qualify for the loan.
Real estate agents and mortgage companies have been lobbying the federal government to alter the HVCC guidelines to produce more accurate appraisals and reduce wait times, but the FHA has reaffirmed HVCC guidelines in a recent evaluation.
The HVCC is bad news for potential homeowners.
Traditional financing is already difficult to obtain, these days, with tight credit requirements, but now HVCC makes it even more difficult to get approved for an appropriate loan for the property you want.
Luckily, non-traditional financing methods aren't affected by HVCC difficulties.
If you've got poor credit, we can still help you find a financing option that will meet your needs.
And if you're having trouble finding a home that HVCC requirements will permit you to buy, non-traditional financing is the perfect option because it bypasses HVCC altogether.
Contact us to get started finding a home with non-traditional financing options.
You won't need to worry about HVCC, or any other government restrictions; all you have to do is let us help you find the home you want, and the best way for you to own it.
Great Deals are everywhere right now and we find them all over the United States.
Let us know if we can help find your next great deal.
In theory, this is supposed to prevent homeowners from winding up upside-down on their mortgage; stuck in a home whose value is nowhere near the loan amount.
In practice, the HVCC presents a range of difficulties to industry professionals.
Appraisals must go through official channels, now, which can take weeks or even months to summon a qualified appraiser.
Appraisers are often called upon to appraise areas with which they're wholly unfamiliar; resulting in inaccurate appraisals and poor neighborhood evaluations and appraisals.
The HVCC was designed to prevent inflated home appraisals, but has actually resulted in under-valuing homes in many circumstances.
This means that homeowners applying for FHA loans can't get approved because the home values are coming in too low to qualify for the loan.
Real estate agents and mortgage companies have been lobbying the federal government to alter the HVCC guidelines to produce more accurate appraisals and reduce wait times, but the FHA has reaffirmed HVCC guidelines in a recent evaluation.
The HVCC is bad news for potential homeowners.
Traditional financing is already difficult to obtain, these days, with tight credit requirements, but now HVCC makes it even more difficult to get approved for an appropriate loan for the property you want.
Luckily, non-traditional financing methods aren't affected by HVCC difficulties.
If you've got poor credit, we can still help you find a financing option that will meet your needs.
And if you're having trouble finding a home that HVCC requirements will permit you to buy, non-traditional financing is the perfect option because it bypasses HVCC altogether.
Contact us to get started finding a home with non-traditional financing options.
You won't need to worry about HVCC, or any other government restrictions; all you have to do is let us help you find the home you want, and the best way for you to own it.
Great Deals are everywhere right now and we find them all over the United States.
Let us know if we can help find your next great deal.
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