Stupid financing question

[Account Closed]

I got a low appraisal from an FHA buyer. Since it stays for 120 days I decided to drop the price. Now I think I may have goofed. Let's say you have a contract for 105k and the app comes in at 100k. Does that mean before or after the down payment? In other words would you drop the price to 100k or 103500 since they would only be borrowing 100? Thanks

[Wayne Brooks]

The appraisal sets the upper limit for the purchase price, not the loan amount, than can be financed. The FHA appraisal won't affect non FHA buyers.