FHA asking from my buyer for a second appraisal. Is that true?

15 Replies

Hi all,

I am in contract to sell a property I rehabed. The closing was suppose to be today, December 22nd and at the last minute the buyer's loan officer told us that because it is a flip and because the buyer is using an FHA loan, FHA requires a second appraisal. Me and my agent never heard of such a thing. Did anyone had experiance with such a case?


Yes...you should always expect a 2nd appraisal requirement with a flip, whether it is FHA, VA, Conventional. Happens all the time. Id ballpark it at about a third of flips end up needing the 2nd appraisal.

Thank you all for your feedback! I wasn't aware of that but I guess the LO should have order a 2nd appraisal immediately and not after closing date.

Originally posted by @Kyle Boughton :

Interesting information! Have never came across a 2nd appraisal being needed on my flips where the buyer financed through an FHA.

I'm guessing that your flips don't go up in value by 100% with rehabs done that quickly (or the ones that do go to non-FHA buyers), or you would have. :)

Yep, it's required with FHA if your sales price is 100% or more greater than your purchase price. Otherwise, the "91 to 180 day" requirement for this went away years ago.

Ug.  So add another week to your closing date.  With the holidays, this appraisal won't be in until mid week IF your lucky AND the LO put a rush on it.

Best of Luck To You!

I haven't seen two appraisals. On my FHA sale it was about 4 months from my buy to my sell. Buy was $80k sell was $145k (so not 100%). I did a VA in 3 months buy price was $91.5k sale at $250k, but only one appraisal. None of the conventional sales have had two appraisals. I have heard the seller has to pay for the second one, is this correct?

Just went through this man!!! And gosh dang it was annoying! This was a flip house and I️ did pretty well on it. Put the property on the market after rehab and received an offer in two days. Inspection went fine and appraisal went fine. Well literally 8 days before closing the bank orders a second appraisal because of the large spread of what I purchased for and what I’m selling for. Appraisal did come in at the same appraisal but it was a little scary.